Naturally we rallied hard off the lows, reversing losses and V shaping on both TGT and the NASDAQ. Whatever trickery is at play here, I chose long ago not to participate. I closed out all of my positions before 9:35, both hedges and longs up and now sit in cash higher by 77bps for the session.
If I had held longs, I might be up more, but there was no way of knowing markets would do this — and of course I am not chasing the rally predicated on idiotic notions.
There is a temptation to short here, but I will not do that either, since the market has V shaped up based on the second earnings warning from TGT inside of a month — the market can do anything at all.
The higher probability play is to wait for the market to settle in and then nibble and conclude the session towards the end of the day, fully hedged and prepared for tomorrow.
If you enjoy the content at iBankCoin, please follow us on Twitter
Just watch the June e-mini futures… that’s the roadmap for direction in near term. You’re welcome.