WELCOME TO MY TIME MACHINE

How many times do I need to show this to you?

On the back of that monumental Obama state of the union address, where he motivated every single american to become a factory worker in Detroit, I expect the market to rip tits to the upside tomorrow. However, it’s a Fed day, so anything can happen.

Here is what I said on Sunday night, inside of The PPT blog (just the conclusion)

In short, the Oversold signal is most effective after 3 days from the original signal. Judging on past results, one could begin buying on Monday and continue to add to position until Wednesday, in order to properly play the signal. I’d set some stops underneath newly acquired shares of about -10% below basis, just in case “this time is different.” In order to buy into a bad market, faith and patience is required. It’s always scary to buy into what feels like doom. However, the market hasn’t disappointed us in years and we’d be remiss to not give it the benefit of the doubt now.

My strategy played out a little different, for a reason. For one, I was fully invested in a lot of semi-liquid biotech. Into strength, I’ve been able to sell PRAN, RPTP and BALT, while cutting losses in ATOS and BMRN. I am left with high beta tech and natural gas that could very easily offer me high beta returns; so I didn’t lose much by selling, with respect to the rally to come.

I intend to sell into this strength and position myself to buy the blood. It’s very possible that we go straight up from here. But with Asian sovereign debt yields on the move higher, I like my chances of being a skeptic here.

It’s gonna be a long year, so bide your time and don’t force trades.