Covered All My Shorts — But No Interest to Buy

I sold both LABD and SOXS for 5%+ gains. The SOXS position was a 15% holding, so the gain was nice. I sold because we were down over 200 and semis were still strong. The logic is obvious. Any reversion in the market will be led higher by semis. Ergo, it was my obligation to close out those positions.

There is a bit of a conundrum in stocks now. The technicals are dreadful, very late 2007ish. However, we’re oversold and shorting into OS tapes is stupid. I’d prefer to short more into a rally — because in a bear market rallied fail.

We’re rangebound, but inside of this range are large red candles, indicative of major distribution. Even though I closed out my shorts, I am not willing to buy yet. There is always the risk we leg lower outside of this range. If that should happen, my shorts will be applied like a figure four fucking leg lock, in fairly short order. To get me long again, in my trading account, I’d need to see an exhaustion day, a really do nothing day following an early sell off. A little boredom is needed.

It’s also worth noting, old man stocks have broken their uptrend and the only safe havens are gold and bonds.

Any idea how horrible that is?

I stepped in and bought a lot more TLT here, seeing it’s the safest way to keep my money safe.

Cash is now ~60%.