We tanked at the open and I went to 100% cash, higher by 14bps for the session. I see the market is presently oversold and there is an urge to splurge in areas of the NASDAQ — hardest hit. Let me remind you, May 9th looms and you might be buying into a declaration of war.
Or perhaps not and the market rallies 4% from here.
Either way, to be honest, I am not interested. What I am interested in is consistency and preservation of capital to withstand the pangs to come. We are in a recession and it’s only going to get worse. Valuations are now at 2019 levels and in order to be considered value — well, we’d need to get another 30% haircut in your favorite stocks.
I am trying to not live in the moment and attempt to offer a bigger picture point of view for you.
On an intra-day basis, anything is possible. Like I said, we are oversold and we can rally fiercely off the lows. This doesn’t mean the rally can stick and it also doesn’t mean we won’t become subjected to margin call liquidations late in the afternoon — nosediving heavily into a concrete pool.
If you bought the bottom, congrats. If you are buying into this rip — keep your stops at 3%.
If you enjoy the content at iBankCoin, please follow us on Twitter
