I know…I sound like a broken record. I added 15% more near the close, paying $95.09 This block was not added due to any system or known edge. Simply, I’m already very short, and the SPX is approaching a level where I will cover my shorts, accepting the losses, in order to not suffer anything more severe or crippling.
My thinking was to add more exposure as I can take comfort in knowing that if the melt-up continues through tomorrow’s close, the last block will not make a huge difference compared to the previous two blocks.
Barring a catastrophe for the bulls, this rather large short position will not likely be closed for a profit. However, I am hoping that I can at least exit the position with my dignity intact. In other words, it would be nice if I could have at least ONE DOWN DAY to cover into. Is that too much to ask?
Also, look at the volume, or lack of it! More than anything, the Nasdaq being up 9 days in a row, Dow getting the greatest percentage gain since whenever, it is the lack of volume that I think should be of the greatest concern to the bulls.
If anyone starts selling in size, there will not be anyone to absorb the shares.
Anyway, just give me my stinkin’ down day and I’ll shut up.