Not many spend time to understand the complications of the stock market—all the small mechanics behind price and time.
Today they tell a story of health and virility.
But that small slip lower we experienced last week followed by an overexertion from the bull, el toro, created context, or a story, that merited exploring a short bias.
Leaning short was effective several times this week, intra-day. Yet we pressed higher. When we came into my favorite Fibonacci extension, which is a fun place for algos to run stops, the level became a last stand for short sellers.
Sellers either defend the level or lose the first full week in the second full month under our new Authoritarian Regime.
It made sense to also go swing short, so I put some QID on the books.
The market confirmed it was a decent entry. We sold off on Tuesday from those levels.
But alas, here we are, lingering above my Fibs. And the longer we do, the more likely this leg of the rally is the real deal and not just a petty stop run.
So my bias intra-day keeps pivoting. This afternoon it was long.
The complications, the context, the story—whatever you want to call it, can form an objective set of observations for making market decisions. Presented with the right facts, any one of you could make the right decision.
Just for fun I ran through all my afternoon observations over on the old snapchat. Check it out if you want, username vCali.
Disclaimer: lots of random stuff on my snap story too
I’m keeping the QID to stay swing short the NAS for now, but it’s on its heels.
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Closed long qqq calls yesterday for profit. Nearly bought puts this morning. Went long qqq calls again this afternoon. Bought more time.