I have experienced my first official short squeeze. Don’t get me wrong I have witnessed one before, but never experienced it while I was heavy short. I felt like a deer in the headlights all day as I watched my portfolio dwindle lower. My only saving grace was [[QCOM]], which did nothing all afternoon, BUT managed to close at the high of the day.
I have no words for you today, because in my mind I thought the rally would fade as traders would get out ahead of the weekend.
Today I took a few blows to my account, but nothing I can’t make back on Monday.
It continues to be a daytraders market. Every position I held overnight looked terrible this morning and got worse as the day went on. Because of this, I want to adjust my trading style to day trading only. Next week I will continue to look for stocks ready to explode and take advantage of the breakout/breakdown via multiple options, I might even try out a few synthetics.
If you enjoy the content at iBankCoin, please follow us on Twitter
Welcome to being bearish in a bear market where bulls will constantly kick you in the nuts as they are being taken down.
How many of your shorts rallied today on lower volume? Most of mine did which tells me everything is still OK. As long as they’re not bouncing on heavier volume, they’re fine. These days do suck – I was on the wrong side today too – but I think you are still on the correct side of the market right now. The past two days might have give everyone a chance to load up on more shorts as well.
I too got burned by being short RIMM from yesterday. Gotta bail cause earnings are just around the corner and you know they love to run it up prior to the release.
don’t short, long term itm puts are a better substitute
Sorry to hear it Cajun.
It might not make you feel any better, but I left a lot of money on the table from selling my longs too early in the day. I too thought the rally would get faded.
Yesterday your team was unbeatable. Today, you were very beatable. You and the Lakers have a lot in common:)
Doubling down after a long sell-off is risky, risky. Markets don’t move in a straight direction, and market makers love to crush inexperienced short-sellers and take their lunch money. I agree with your overall perspective on the markets, but I was suspicious your “across-the-board” diETF strategy was gonna backfire, particularly given the broad-based selling in recent weeks.
I only know because similar stuff’s happened to me so many times. I was up 187% percent on March 17th, and down 30% by May 15th. Now I’m back up 30%, and much more market-neutral and conservative in my portfolio. As the numbers in my portfolio get bigger, my tolerance for risk shrinks. Funny how that works…
Kieran, I don’t know if you were talking to me or not.
If you were, I was long, as of Thursday morning, very long. I caught a very nice move long in the ultra etfs. Of course, if you feel the need, all the trades are verified by Covestor.
So there has been no backfiring of any strategy on my part.
As far as “across the board” diETF strategy, I’m not sure what that means.
do you all think that if oil goes down, the market rallies? Saudies are talking like they might pump more by actually stating current oil price levels are unjustified. even Greenspan said chances of large recession have diminished substantially.
Look forward to your day picks Cajun – I think in and out in this market is the way to go, holding more than one day is just too much whipsaw.
With LEH reporting Monday, GS on 6/17 and the oil talk, things could get very interesting. I have no doubt the PPV wants this market, at minimum, not to tank and preferably go up, otherwise a lot of pals loose the big bucks, millions of folk just in the US suffer thru unemployment, etc,, many more millions in underdeveloped countries, can’t buy the rice they need, etc.
Let me guess…. SPWR?
That got pretty nasty in the afternoon.
MAC – I’m sure RC feels better that his portfolio imploded on low volume…hahahah moron