As tempting as it is to buy [[SKF]] or [[SRS]] down huge, I will not attempt to bottom fish, until we get a few trading days under our proverbial belts. First of all, we have no idea how effective or ineffective the new Fed plan will be. Therefore, with that logic, executing any directional trade now is pure river boat gambling.
You might as well take your fat ass over to OTB and hang out with the rest of the losers, while you’re at it.
In my book, the best thing to do, on days like this, is sit it out. Do nothing.
Worst case scenario, you might end up paying 2-3% higher, for inverse ETF purchases or long side plays. However, that’s a price I am willing to pay for assurance.
Frankly, if you’re buying this tape, and this is nothing but a headfake, tomorrow or the day after will be the beginning of the end for your bullshit trading career.
On the other hand, if you’re short and continue to sell into this rally, without thinking, you can easily find yourself in a world of pain—should this rally extend a few more days.
My bias, as always, is bearish. However, this time around, I am going to be far more evil and guileful with my next set of investments or reverse investments—if you know what I mean.
NOTE: Even though the textbook says to go long, “The Fly’s” book says to do nothing. I just wanted to clarify my title.If you enjoy the content at iBankCoin, please follow us on Twitter