I entered today beta neutral via $SQQQ, so I have very few gains to boast about. In an ideal world, I’d be up 5% today and making fun of all of you for being up less than 0.2%; but alas, this is the journey I’ve chosen and I’ll just have to dream about those sort of sordid returns, for the time being.
Here is what we do know about today’s tape:
Most stocks are up, especially high growth oversold sectors
$NVDA is up, the all important oracle of today’s market
Yields are flat and the dollar is up marginally against the Yen
The Yen Carry trade continues to unravel and has been a source of concern for plebeians trading to and fro. Due to the tenuous condition of the market, I am 33% cash with several short term positions in place that can be sold to get me over 40%. The reason why I am so cash heavy is due to the technical breakdown in the Nasdaq and the $SPY.
Even still, high beta stocks are up and SAAS stocks are up and we should enjoy a respite from the selling soon. Although I just closed out an $SQQQ trade and still feel there is a chance this entire rally unravels to plunges into the abyss, I am willing to give it a shot on the upside, only because recent history says that’s the most likely course of action.
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