I like when bulls pretend that the “pain trade” is higher, always higher, as if Main Street NPCs were out there taking money out from their 401ks to sell short. The fact of the matter is, the pain trade is always down, now and forever. We are having a bit of a rally here, which can be construed as a “relief rally” from all of the pain and suffering absorbed by longs during this months of December.
Krampus was hiding inside your Xmas presents and as soon as your children opened them — he jumped out and ate them.
Look at the surreal carnage done the past 1 month.
I had large directional bets to the downside heading into today, to hedge a 100% long portfolio — which is a PERMANENT fixture now that I am letting Stocklabs choose my stocks on a weekly basis. I lost a quick 10 grande and closed them out, not because I like to lose 10 grande — but because I had to adhere to what the market was saying.
You might not like the truth, but there it is.
Although tempted to apply upside leverage and take advantage of this rally, I will wait for the intra-day charts to mature so that I can draw lines on them and completely control the market with them.
We should be fine today and possibly tomorrow. Tax loss selling is done and most of the market retards have been wiped the fuck out. However, and do not forget this, January looms.
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You don’t have to be short to feel pain on the upside – you just have to be carrying a lot of cash. FOMO.