WE ARE CONSOLIDATING RECENT GAINS

If, for example, markets tumbled 10% from here we’d still be in an uptrend — but there would be reason for concern. The NASDAQ is DOWN 0.7% for the week and some people out there are acting like the world is ending.

Yes, it’s true — markets haven’t gone up every single day. But it’s also true that the bears haven’t been banking either.

We are in a consolidation mode aka trading sideways — which usually portends a violent move up or down. My bias of course is for a horrendously lower tape amidst volcanos busting with mean fire. Alas, I am rarely entreated with these surprises, so expect more of the same.

At the moment I am 100% long and levered with an SQQQ short at 20% of equity — flat for the session. I am focused on risk averse stocks — because I too am consolidating and cannot truly focus on trading well whilst harangued by broken knees and such.