Whirlwind of Selling Underway

It had the appearance of a rally at the open, although tepid and I suppose that was the tell. Following yesterday’s rout we inched higher this morning and whenever that happens, it’s only a matter of time when the weak hands acquiesce to raise cash and then it all comes tumbling down.

The semis are down 10% from their highs, officially a correction. However, those highs are still extraordinarily higher than any previous bull run. We now are betwixt several prevailing narratives:

1. The current President of United States has dementia and will not step down.
2. The presumptive President has policies that were good in the previous administration for the economy, bullish for oil, banks, and retail: domestic oriented names.
3. Confidence has been fractured. We are not in panic mode but the beginnings of what might be a market rout is underway.

I had a 22% $SQQQ at the open and ended selling it for minor gains, while it was down. I have since reaquired half the position and gave up any gains that I had early on, now off by 115bps. The urge to sell short is palpable and it’s always very alluring, the idea of a comeuppance stemming from decades of frustration with the ruling class. I sometimes forget my entire fortunes are intermingled with the exchanges and if being honest I’d risk it all just for the satisfaction of wreaking havoc on this system of perfidy. Alas back to reality, this is only a minor blip in a larger never ending ride higher, fueled by cheap and accessible credit, hegemony, and technological innovation unmatched from anywhere else in the world.