Yup, I said I am short Semis and Tech, but I am much longer the market. Remember, I am not one of you fancy traders; I am a portfolio twittler. Balance and macro perspective are the big things (hence, income paying cash and Treasury bonds vs. ‘Inflation Trade’ items and a plan to build short positions against longs on the near-term.
Then the trick is to decide on the favored scenario (another leg down in stocks to fill the gap in the 2400s) vs. the less favored scenario (move along, retails bulls flushed and now nothing to see here but bullish blue sky). I think a fill of the lower gap could be bullish for 2nd half 2018. But let’s not guess.
This rally may be doing a good job of stimulating FOMO in the new traders who got flushed last week and as they buy back in, the bounce is maturing as SPX nears our favored rebound area at the 50 day moving average.
Volatility has been sent back to the hell it came from.
And the waters appear safe again. If you don’t mind a few Great Whites.
Subscribe to NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas; or the free eLetter for an introduction to our work. You can also keep up to date with plenty of actionable public content at NFTRH.com by using the email form on the right sidebar. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at Biiwii.com.