There may be a gigantic head and shoulder pattern forming on the Nasdaq composite, but in the meantime there is nothing wrong with being a champion on the long side. We need to keep an objective perspective here. Yes, there has been damage done to the my favorite hot money momentum stocks. Indeed, I was on the receiving end of a correction one loser at a time. But as Mr. Cain Thailer so eloquently stated, now is not the time to be cowering in the corner. No, now is the time for the market to start paying interest on the money it took.
I have no reason to contemplate taking a short sale, yet here I was considering exactly this choice. I watched a few of my favorite issues today, notably WB, and simply sat on my hands as lovely buy flow propelled them higher. My largest position last week, three D, looks ready to pull the D’s out, if you know what I mean. I am without my shares. Should I cry about covering my DDD? Or should I have been a buyer today with conviction? The setup is still live.
Although I am relegated to my smallest long exposure of the year into what is shaping up to be a strong week, I can quickly steer my small boat into the riptide and ride out into glory. I am picking my battles, very slowly. A commenter suggested I may be overtrading. I couldn’t agree more. Therefore, I am taking a chill pill and watching this lovely intermediate term balance play out.
So far, buyers are holding the line. Should they defend the next (if it even comes) wave of selling, longs could get very interesting fast.
Today felt like 2013.
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