BLOODBATH

Over 900 stocks traded down more than 3% today. The divergence between the Nasdaq and the Russell continues in the most perverse way possible, with the $IWM hammered for 1.5% crossed against the NASDAQ’s gain of 0.52%. “Markets” were up but 65% of stocks were lower for the session.

Here was the upside breadth for every day this week.

Friday 35%
Thursday 35%
Wednesday 49%
Monday 51%

The game is concentrated to just a few stocks at the highest levels of cap. All other are being sold and if you’re trying to be cute and find “big winners”, you are getting manhandled. ‘Tis was the case with me today, giving back all of the gains I fought so hard for yesterday, losing 172bps for the session and it happened in slow motion, tick by tick, methodical and predictable drips lower. I restarted several times today, trying different approach and all came up flat. I ebbed slowly into $GME and that was perhaps my best approach, now with a 3% sized position down around 1% from my basis.

The market has been this way for me for many months now. I was tempted to short into the close but stopped myself due to a mean reversion call out of Stocklabs. It feels good to short into the hole because of the belief such a hole will turn into a crater and bury everyone in it.

For the week, I ended up making 0.7% in trading, 1% in Quant and breaking even in strategic. It wasn’t a bad week, but just disappointing in that momentum was not enjoyed and today’s flop out bodes poorly for the overall technicals of the market.