Going into the closing hour, expect the market to whipsaw about, in an effort to fuck as many people as humanly possible.
Just when it looked like we were rolling over, BAM, we melted up. The quick knee jerk reaction is to buy now, in anticipation of a late day rally. However, the market does not follow predictable patterns any longer. So, my adivce, as always, is to stick to a thesis, hedge up if you can, and deal with it.
If you are net short, prepare to average up. If you are net long, prepare to average down.
Basically, the volatility is so extreme, one could make money, with timely buys/sell, playing both sides of the market.
At the moment, I am net short. However, it’s worth noting, I am a little nervous about that, due to seasonality.
Until the Goldman Sachs Group, Inc. [[GS]] and General Motors Corporation [[GM]] situation is resolved, expect a black cloud to loom over the markets head. With that in mind, I am comfortable loading up on shorts here. Of course, my position is different than yours, sitting on big year to date gains.
Whatever you decide to do, be sure to think “worst case scenario;” because this market is all about making peoples worst nightmares come true.
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