There are days in the market when everything seems clear and simple. Other times I have no idea what I’m doing and I realize this and trade small in order to prevent myself from exploding. The past week, in spite of my grandiose winning streak, has been mostly luck. I bought some stocks, closed my eyes, and Mother Market did the rest. The past two days, however, we’ve been seeing wide divergences between small caps and the overall market. Right now the Dow is off by 200, Nasdaq only 10 — but the Russell is off by another 1.5% on top of yesterdays -2.5%.
Small caps are owned by weak hands and they are getting flushed the fuck out. We all know the issues with the economy and how this entire rally has been one giant fever dream. So the second I start to see some momentum to the downside, I am immediately on the look out for afternoon rapes. We might find ourselves accosted, severely, by sellers this afternoon.
Presently, many of my PIECE OF SHIT positions are higher, incredulously — more luck involved there. I do have a HANKERING for gold and sense the fear building up slowly as the tide recedes and the swimmers of this rally are revealed to be hideously deformed monsters with mangled bodies and faces.
WE ARE ON THE LOOKOUT for bowling balls rolling downhill towards us at all times. I haven’t seen enough to get net short again. But honestly, I really want to see it soon.If you enjoy the content at iBankCoin, please follow us on Twitter