I tried to view the market negatively but kept stumbling upon some positive aspects of the session. I guess you could point to the $SMH down another 1.3% as proof we are selling off. But there are a myriad of other sectors on the up, such as software, electric vehicles, trucking and online retail. Look at $AMZN.
I pared all of my losers down and did take a quick trade in $SOXS because of the semi weakness, but I closed it out quickly for a profit. I find the best way to treat inverse ETFs are for overnight hedges and during quick scalps throughout the day. They are terrible for swing trades and an abomination for periods longer than a week. I figured if I can grab 100bps here and 200bps in them, it will eventually make up some loss ground in my longs and help me overachieve. There are times when I do nothing but lose money in them, mostly when I am skeptical of the upside and trying to time a pivot. But if you’re timing them correctly, they are excellent tools to help protect accounts during periods of uncertainty.
Market breadth is better than yesterday, but still not good sitting at 48%. We are in what I like to call a “traders market” with lots of cross currents and dependence on momentum in niche areas. In other words, if you’re not trading in Stocklabs you’re most likely lost.
If you enjoy the content at iBankCoin, please follow us on Twitter
