Yeah certainly not justified on earnings, but nothing about this market is rational. Still when shorting something irrational you got to know when to get out and for me it is if we close above ATH on SPX. I'll take another shot when it drops back below ATH, but hopefully it manages to stay above for awhile so I can get some peace of mind.
My system Tech Trader is loading up on breakout longs again, this time $BMRN, $PLCM, $TJX, $WWAV (again). Was very long into Brexit but turned out not to matter as $SPY just broke year highs. Still only 80% long by 15% short right now but managing to capture full performance of the S&P even without being fully invested. Sector exposures are still neutral though with no one sector more than 10% exposure. It would be interesting if the seasonality this year is reversed (sell off in the winter, rally in the summer). https://www.techtrader.ai/wall/?date=1467971113&post=9592
I went 75% cash on my long term acct at 2071 but I'm comfortable with the decision. I'll see what happens after/if we close above and re-evaluate. Missing a few percent to book the YTD gains was a no brainer for me.
The child in me couldn't help but point out your phallic like drawing on the chart... lol almost looks like a birds and the bees illustration.
...... if you really think about it, the situation isn't about what's rational or irrational. The money has to go somewhere. Equities are still the highest returns in the game until further notice.
I posted the 6month SPX earlier ..... here's the 3 year. Volume profile is very similar with the "P" shape favoring longs. So why I am I drawing letters or phalluses on my charts? LOL ....... Think about it like this: - All movements have a "structure", which inevitably form bell curves. - There are different types of bell curves and each tells you where the mean and true range is. - Each bell curve helps identify the strength/weakness while painting the story supply/demand story of shares .... which is what this game is really about.
I agree, but the "money also has to vanish somewhere"...lol..I know you remember 2008... hell, we were basically in the same boat - no job, and trading penny stocks...hopefully, that never happens again. "Equities are still the highest returns in the game until further notice" - I think illegal drugs have that beat, and the CIA knows it, and taking advantage of it
That's sort've a "yeeeeah, but ......" statement. F- penny stocks LOL, I don't miss that crap one bit. Money from the market will vanish again eventually <----- keyword. When exactly that is, nobody here has been able to correctly identify, which is why I keep harping on playing the game until its broken. Where is all this cheap money going to go if it wants to vanish though? Nothing's going to change until the cost of capital does.
