iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
22,033 Blog Posts

TECH STOCKS BUST LOOSE TO THE UPSIDE — WHAT’S NEXT?

They’re going to head back down is what will happen next. The last time SAAS stocks jumped up by this much, now +7%, they fell 5% the very next day. Let this be a remindoor to all of you rookies out there — bear markets are cruel affairs and designed to propel you out from your high rise window onto the pavement below.

I have been in the comforts of cash all day, doing a little of this and a little of that — but now I am ready to work. My knee-jerk reaction was to buy some oils and short banks — so I did. The “Finnies” are underperforming today and if the market heaves over into the bell — they’ll lead on the downside.

I have certain biases about the market and I will pursue them into the close. For one, I am biased against tech growth, which is where all of the fun is today, tech stocks up 2%+ for the session. But that’s ok. I am not playing their game, but mine. I am up 44bps for the day and do not need to make 2% every single session.

In the big scheme of things, both the Dow and the S&P are down, which means most hedge funds are down again. The NASDAQ is marginally higher, but there is robust action in all of the beaten up names Melvin Capital just liquidated. This is a trap. All rugs will be pulled. All bids will be hit. And all people margined into what they believe is the bottom will be zeroed out.

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