Bull Runs Inside Bear Markets Create Monsters

Lots of bad news today. To some, this news means nothing — because there are zero scenarios where stocks should deserve to trade lower. Admittedly, I’ve been trading like an ape the past two weeks, specifically due to the length of the recent bull run in what I believed to be a bear market. Last time I traded like this was when we bounced off the bottom a month or so ago, in what I termed the “FAGbox” — a level of chop that ended up being, just like I called it, a floor from which devil would be born.

Now we have a scenario where traders have gotten fat off the recent gains and have forgotten the reason why we went down in the first place.

I am 30% cash, which is usually a large cash position for anyone in the business of managing money. But because I am not managing money for anyone now, and simply trading my own account, this is equal to being caught flat footed, boat caught in a storm without paddles.

Because I have some longs trading up this morning, the money I have invested is only -0.8%. With the 30% cash, it’s appreciably less. The point is this, very simply: FUCK OFF you cock-gobbling bastards. I hope this market goes to hell and takes you with it.