iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
22,274 Blog Posts

CHASED THE RALLY; HALVED MY GAINS

It’s always risky stepping back in after you stepped out to chase a rally. Sometimes it works out and other times it flops. I stepped back in after booking a 75bps morning gain and now my gains are barely 40bps. But I’m not all the way on, only 44% invested with the rest in cash.

With the NASDAQ already up 340 and markets always on edge for an afternoon sell off — I’m taking foolish risks for the sake of entertainment. Perhaps I can sashay myself to a 1.5% gain or more like a 0.5% loss. The correct trade would be to do NOTHING at all and wait for the end of session.

Why?

Because betting on bear market rallies is stupid and the people chasing these rallies don’t have staying power and sell at the first sign of weakness.

My options are now to double down into weakness or hedge into the close for tomorrow’s open.

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