Yesterday I was apprehensive to trust the rally because I have trust issues on the long side, with stocks down 40% for the year. I viewed the chances of a busting loose at 30% and positioned for chicanery. Fortunately I was able to extricate myself almost entirely from the market today at breakeven, extending my streak of missing out on monster bull runs inside a bear market to 90%.
With the NASDAQ up 300 today, you might be tempted to short. I alluded to previous bad Septembers and how October can go either way this weekend.
Well, the NASDAQ is now up greater than 5% for October and it’s looking like we might be entreated to one of those sharp rally months of October, one that could perhaps grant SOXL +50%.
With breadth at 90%, it’s hard to sell it down here. However, at the same time, I’d be reticent and am reticent to chase, since chasing is what clowns often do and I don’t feel like slipping on a banana peel, sliding all the way down into the sewers and beyond.
I’ll likely scalp with ETFs today and position the same way at the end of the day as I did yesterday.
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