Zero complaints if you’re a permanent bull. Everything you like to see is happening. Stocks are happy and fat. Bears crucified and their bodies displayed for all future potential bears to see as a warning.
I closed out my trading account this morning, as is customary for me at the start of a new week, +152bps in spite of a monstrous 8.8% loss in my SOXS hedge. I would’ve been up 3% this morning if it weren’t for that small misfortune.
I can and will allay my hedging losses on the fact that the market has stunk to high heavens for the better part of the past 12 months. Even though we are rallying and all seems to be going well for Pax Americana, it is clear to me that the market is overbought and also it’s clear to me that stocks are vulnerable to a weak economic backdrop.
Nevertheless, price action is king and right now the prices are going up.
I’ll re allocate a 100% long book after 12pm today, using the Stocklabs weekly quant.
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