Busy afternoon today but I wanted to touch base post Fed Minutes.
Third reaction analysis yielded the short-term buy signal on the news, and it wasn’t long before we ripped to the other side of balance.
We are neutral now which is something to keep in mind. I’m hesitant to chase this action. Instead I booked some gains into it.
Shortly after the minutes I dumped my Dow short via DXD. Right now the market isn’t mean reverting the standout indices—instead I am seeing instruments gain momentum. Both directions.
Like biotech—it was obliterated for two consecutive weeks and pushing a short against it has been a more effective (but not yet a win) trade. The Dow is leading and has a strong supporting cast with the Russell.
My model got this week wrong. It was on a four-win streak. Such is life. I will still press its edge the next time it comes around.
Barring some kind of event, I expect this afternoon strength to fizzle out but the overall grind to continue higher.
In summary, my only short is BIS and I am otherwise long and directing my eyeballs right at the middle of the sun.
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I do enjoy the view from the other side. Sort of an ibankcoin balance to the mayhem above