Gone are the days of benign corrections which satisfy the need to courrreccct the stock index market whilst traders sip kahlua and enjoy safe harbor in wild-eyed momentum stocks. These days correlations elevate fast, stock picking is a dart master’s feat, and short duration is an open invite for crimson portfolio shades.
During the chopfest of January and early February I developed “fungula” logic wherein you buy literally the ugliest looking technical chart you can find and voila! It made money. It was fast, fun, and profitable. Then we all climbed aboard another moonraker mid February and went exploring.
The problem was, at least for your dearest Raul, catching some meaningful momo was spotty. So you poke-poke-poke your boat, gently up the stream, gathering trades and then blam-o, a seller works the market over.
If I sound a touch jaded then you’re on to me. Fortunately I’ve had success today operating the SS Harmonic Raider across the fast waters of the Nasdaq otherwise I would be downright salty.
I sold out of oil today on low tick of the session. I thought my support level was failing and down went UWTI. I also sold out of VA and S, booking those ideas to free my mind a bit and challenge it to discover something new.
Tomorrow afternoon we find out how our benevolent banksters fared in this latest round of Fed stress testing and, let’s be frank, these types of events are all that matters to the stock market.
Greek—noise, laptops that are 80% battery—noise, earnings—noise.
Listen to your leaders at the Fed and watch their mechanism, the monthly Non Farm Payroll data. Without QE their only variable is the (as many believe) inevitable rise in interest rates.
Dollars FTW
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i got that work
Hallelujah