A miraculous turn of events has led the markets straight up into the final hour of trade. Before the miracle rally Stocklabs was OS and I had intended to buy TQQQ, which would’ve been nice but I was distracted by an urgent phone call. With the 500 point rally and the NASDAQ V-shaping higher, I am once again BEARISH on the tape in the short term. These sort of rallies do nothing but delay the inevitable flush out right down the fucking drain and into the sea.
All day we had Monkey Pox scares and I took a nice 10% weighted trade in GOVX for a 17% gain, which would’ve been 100% had I waited a little. Nevertheless, I am content with my 2% daily gain without ever having more than 20% of my money allocated. I closed with TZA at 10%, TNXP (Monkey Pox) 5% and CHK at 5%. My returns for the week was 3.2%, now up 5.4% for May and +33% for the year. My intention is to remain low volume during this rotation/liquidation and only take larger stabs during periods of high conviction.
Reason being: Almost every earnings call is bearish. Commodity stocks are no longer trading inverse to the markets and aren’t safe. The safe havens in secular stocks have been uprooted thanks to the rushed decapitation of the consumer, vis a vie TGT, WMT, COST, BURL, ROST etc.
Permanent bulls are just lazy thinkers and have resorted on time to save them from their poor trading skills. For over a decade the market has rewarded people for being patient, providing they bought good stocks. I do believe “this time is different” — mainly because the Fed is now working against the interests of the market. Plus, the war in Russia/Ukraine is going to have profound ancillary effects, such that you will be eating bugs by next year.If you enjoy the content at iBankCoin, please follow us on Twitter