I hate to be a knife catcher, but the way the media has been pumping the “world markets” as being super bullish, flaunting their “extended gains” is starting to irritate me immensely. I plan on catching EEV by the handle, then using it on a myopic bull. Perhaps I will come in a cloak, and deliver the dagger. It’s a crazy bearish equation that not many can see. Well, I’m not meant to be seen anyway..
rising on hope + rising on low volume
Here’s an example of the hope:
Friends, this is not a healthy market to be getting long in, but if you were prudent enough to get long when the Vix was in the high 50s (when we kissed the 60s good bye, early in December), then you should begin to sell some stocks to the dumb money. If you’d rather ride this out, which is a viable option to swing trading this tape, then I strongly suggest you start buying some hedges, for example, getting long SRS or EEV here (due to panic in the bear camp, I have a buy-limit set on EEV between 43.50 – 44.50. I will gladly override that), which will help you to “buy time.” Right now, it’s a little difficult to use shorts as a “hedge”, I mean, did you see the reversal on MELI on Monday (maybe energy’s sell-on-the-news is a place to short)? That was a bear killer. If you’re having a little difficulty finding a bear-trade to hedge longs, then go with our default strategy for uncertainty… lighten positions!
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