For the first time since stalking this equity topping process in March of 2014 I am 100% short my capital. I started shorting this morning. I am letting my IBB puts from Friday run. The semis, transports and bio’s are getting slaughtered today. Transports took out the March trading cycle low. I suspect the Dow and SPX to follow. I have stops in place. I suspect the narrative will soon shift to how weak the economy is and earnings expectations coming down. March lows on cash SPX needs to be defended or its game on to the down side. I will cover quickly if wrong but my Third Eye is tingling. I predict QE4 by September/October. The Fed is behind the curve.
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March lows on cash has already been breached, no?
bchu12,
No, 2039 is lower.
Please post your short BFMO and you will look like you nailed it versus telling us at 3:18, guess I’m looking for that #timestamp all the blowhards on Twitter brag about when they nail a trade in real time. No disrespect to you, either.
flaway18,
Sorry I was busy building short positions all day. Averaged in all the way down. I blog for my amusement. Check out my blog from the end of February. Still holding that short. I did post The IBB short as it was happening in the morning. But know this I don’t make shit up. My shorts today were not day trades but higher time frame shorts. My opinions are just that they are just opinions. No offense taken.
Nice call BlueStar!
Unrelated song – https://www.youtube.com/watch?v=gr8JhnjPHJ8
I know “BUY THE FUCKING DIP”
is really old and due for plummet
but please not now as I have a wedding
to pay for.
gorby,
as always I could be wrong. Most conviction I have had.
BlueStar:
One thing about it, you put your money
where you mouth is.
Equinox!!!!!
the 3rd eye, otherwise known as the pineal gland, the epiphysis cerebri, which sits in the mid-brain and functions as the organ of the 7th sense or the sense of fine-spiritual perception which has atrophied in the modern human to a size of 3 millimeters from 3 centimeters in the primitive human because our rational intellect has taken over and constructed an unconscious blockage to the finer energies, such as thought energies or electromagnetic vibrations creating a very limited restriction in perceiving that which cannot be perceived through the 5 material senses .. which is why it is called the inner eye or third eye
Juice,
I am glad you got the reference.
Juice, that’s what psyllocybin is for (or DMT).
Ed, I’m waiting till the “bounce & bail” aka “bounce & fail”… The BTFD’ers will buy this plunge soon, probably at the March lows. I’m going to let the “V” bottom ensue and I think it will finally fail. That’s when I’ll be 100% short.
100% short? Seems a bit drastic. That’s basically saying that you think this is THE BIG ONE, for real – for real yo. Not sure what you are seeing that would make that seem more likely than any other micro-drop in the past 6 years?? How much are you risking?
What makes this time “different”?
@TM, does it really matter? Blue said 100%. Why the need to know the $ amount? besides he is employing risk management with stops as he mentioned.
Blue, model flashed to allocate to 50% cash. We’ll see how the week develops going in to end of Q1.
@jimmy – I didn’t ask for $ amount. Where are those stops placed. A % is fine.
@TM, sorry misinterpreted your question. You were asking % at risk — gotcha.
Blue do you have a downside target for any of the indexes?
they are buying the dip at the bottom of the Bollinger band. just like the last 8 or so times let’s see if it works this time. If not I a with Blue.
Of course I’ll be buying the dip.I have
5% cash after all.
Blue – thoughts on crude?? good place to short here?
Pedro,
My post from end of February mentioned a secret indicator. It completed and indicates potential for a higher degree top. Again I could be wrong but my thesis is that when this tops it will be swift and vicious. Taking out all the dippers. Plus all the fundamental stuff that the market is ignoring due to the cetral bank put. Once price rolls watch everyone in hindsight trot out how all the signs were there.
jimm,
thanks for the model update.
Tm,
stops are secret. placed 2% above average cost of short.
superpositron,
longer term I am thinking October lows as a first stop if I am right. The big question is do we get CB meddling.
bchu12,
oil is in a powerful counter trend move. wait for it to turn on a weekly basis before shorting.
Wait, bears and third eyes. There could be a good blog post forthcoming, depending on which definition we use.
http://www.urbandictionary.com/define.php?term=Third+Eye&defid=4407722
http://www.urbandictionary.com/define.php?term=Third+Eye&defid=1365785
Option Addict,
LOL, It goes without saying that I am an asshole.
Dude, I bought the domain http://www.optionasshole.com last year. I feel ya buddy.
Good luck, Blue, I never give it 100% lol.
velth,
lol
Howdy Blue…Any thoughts on grandma speaking before close?? Thanks and thanks.
test,
grandma is becoming more irrelevant as the half life of Fed candy is down to about 3-4 days. We erased all of the fed love last week.