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I got stopped out of several upside ETFs today — and I made zero on the downside, in spite of knowing we were heading down. Truth is, I am petrified to miss out on the bounce. I bet many of you feel the same, which is why we’re not bouncing. I am starting to believe the bullshit and think the market knows something not priced into the economic news flow. However, we have a President who is obsessed with the market and I’d be shocked if something big didn’t come out soon, in regards to China.
At the close of trade, I am 55% cash in my trading account and 120% long in Quant. I am bleeding out, in line with market on Quant side, and doing better in trading — only because my exposure has been limited. Going into yesterday’s trade I was 65% cash.
Here’s what’s going to happen next.
We are going to McPlunge tomorrow morning in a harrowing tape. We might even halt trading, as people trip over themselves, cracking their teeth on the pavement, trying to save themselves from death. Over the weekend, we will have news that will provide succor for bulls. We will bounce next week and some might think all is well. This will be a grave error, for we will retest the lows, matching apathy with fear to produce an environment that might be considered to be toxic. That is when you should buy — with cock in hand, strong, and with force.
Exodus is very oversold, for the sixth consecutive day. This is an unprecedented move lower, one formulated without the comforts respite and this fact is why the pin action concerns me. Could this be the market communicating something ominous or is this merely a pit stop en route to new highs?
Faster traders might be inclined to short now and cover quickly. I am looking for a massive move higher and have been patient with my cash, trying to avoid head fakes. We will bottom, finally, when the last bull gives up and the general tone of the market is dreadful and of course poisonous.If you enjoy the content at iBankCoin, please follow us on Twitter