MONDAY LOOMS

Heavy selling in crypto miners, Chinese and biotech stocks — steep drawdowns in a slew of momo stocks but FANG saved the day and market closed basically UNCH in spite of the looming tumult that is to come in very short order.

I will have you know, I cannot recall the last time I have traded so poorly, missing trades as if I was new. I know the feeling in my gut and that feeling on more than one occasion has turned moderate losses into much larger ones — so pardon me if I tell you that I have to trade small and without much bravado, otherwise I am going to be routed.

No one likes to be routed, but it just happens when you’re no longer connected to the prevailing winds of the tape. This is not my tape, never has been. I prefer a rip roaring market filled with momo stocks and hedonistic glory. We have been in and still remain in a methodical tape rewarding larger hedge fund hotel type stocks and the old glory we enjoyed amidst the pennies and all of the EV and alt energy stocks are really really dead and those rallies are far and few in between. I am wise enough to know this but still get boondoggled into trades because fast money is addictive and I pine for it just like I pine for the days when I’d buy a stock +15% only to see it later in the day +35%.

This market is much more conducive with swing trading and positions that are accumulated over longer periods — larger capped — stocks with meaning and not just bullshit being mentioned on message boards — stocks like CELH, AFRM, and YOU.

I suspect markets will want lower next week. After all, we bounced this week off the bottom and the news flow isn’t finished and GDP growth is slowing, so we’ll see.

I ended net short, so this is my book talking, with an interest in a few runners. I like short small caps, China, and biotechs into next week.

As always, we’ll trade live inside Stocklabs.

CIAO