STOCKLABS MOVES TO BULLISH

We finally are getting some positive backtest results on our intelligence algorithms, which is a measure of the aggregate tech score against historical returns. In this case, I am backtesting over 6 months.

I am presently at session highs, +194bps, long SOXL at 2.5% and UVIX at 8%. I like to use hedges when I want to slow things down and then trade tactfully around them, whilst adding to positions in small increments. For this fast tape, the only viable options for me is to trade ETFs. They’re liquid and I don’t need to worry about XYZ having a counter-trend day.

Into the close, I suspect we rally into the close. The fact of that matter is, no one expected the market to rally into what people are saying will be another +150bps in Fed rate hikes over the next two meetings. Eventually, these hikes will lay waste to a wide variety of areas. But for now, people want to trade up stocks and feel good about tomorrow when fully knowing there is nothing but doom waiting for them.

It’s fun to pretend.