Take Everything Into Consideration

It’s easy to see what’s going on here. The market’s upside momentum is being ravaged by EU headline risk causing people to flake out and sell into any and all strength. It’s a little disturbing for longs, but at the same time, could prove ultimately the best buying prices. I said this A.M. that I would sell out of the ETFs and look to initiate shorts, but instead fell victim to LOLitis and overtraded my way into frustration. I’m left with 6 positions I’m happy with: WNR, MU, CF, GSVC, AEC and CENX.

I’m hesitant to initiate shorts here, seeing as how the market certainly feels tempted to “get on up.” While I understand the downside risk, I’d rather be long+cash than long+short should the market go where I feel it wants to, which will happen if the EU headline risk ceases for even a couple days, or better yet, another temporary solution is agreed upon. Into strength I will diverge from CF and perhaps MU, only after initiating some short-sale exposure. Should the market melt down, I’m saddled with 50% cash that will protect me from extreme drawdowns, allow me to average down in positions and, if the situation gets so bloody bad that it warrants short selling into the messy, red shithole, then I can do that to.

So, what’s it gonna be? Blue skies or red seas?