Insidious. This is precisely what happened to me in 2014, hammered to dust in SAAS stocks while the NASDAQ printed green candles. I wanted to commit arson. Markets are up, but the high beta trading names are hammered into dust. The fades are real and if history is of any use at all, this will be an unrelenting torment for people holding long term.
Pre-market I was enjoying the tape, up a genteel 35bps. But it didn’t feel right with the NASDAQ futs +75 and I quickly learned what that was all about — presently in the sewers off by 330bps. I chased the rats at the open and now find myself underground with a flashlight running low on batteries. Perhaps the Gods will save me and offer me a sign. Or, perhaps I am due for a sharp comeuppance. Either way, I am in it now, 85% long fucked stocks.
In my other accounts, I am enjoying gentlemanly gains of 90bps, in line, or perhaps more, than the general indices.
What I will have to do, sometime today, is cleave the names that are causing me grief and cash up. Once in the hole like this, anymore more than 3%, one flirts with presiding over a disastrous day if trading in and out, attempting to market time. I’ve found it’s best to stem the losses and try the next day, otherwise, mentally, you’ll be fucked the whole day and night and begin to think emotionally, instead of the preferred coldness that is the disposition for all truly great traders.
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I remember the four horsedmen of 2014
Long VXX, short Russell. Looking forward to being punished for my lack of faith. …but is it different this time? Biden’s handlers having him talking about tax hikes and such.
Oh great Fly, where is “the long awaited stocklabs”
Ah hem. If it may Fly, I shall fill in for your marketing dept here:
“You are too stupid to fish. So Fly Himself, in his grand beneficence, will descend from the heavens just long enough to tell you what to buy. You’re welcome.”