So tell me, how do you write about volatility to come, mentally prepare for it and then get beaten by it? Well, if you are me you live up to your non day traderism and see to other important things in life thinking that maybe you get a free pass, the short-covering market bounce might keep going for another day* and you can add shorts and/or raise cash later.
But you of course return home, flip on the screen and see the whole mess reversed while you were out. Your Even Steven shtick got whacked as well because the precious metals took a pullback today and the Utes, and shorts did not compensate for the draw down. So you make some adjustments, see the big picture and prepare to show up again tomorrow, knowing it’s a new day.
Will the VIX be aiming for a new high? Drop to fill the gap? The damn volatility goes both ways.
The market painted a lot of bearish engulfing candles today and that got me raising already high cash levels further (the damn stuff is paying income now, after all). Gold/silver/miners are not yet definitively bullish, nor have they lost potential in a negative macro environment (except for one of my miners that got hammered for no reason other than maybe da boyz in Toronto saw a gap from July and just had to go for it).
If you ask me, this pig can just as easily bounce again tomorrow as drop. There’s a gap in the low 2700s and a gap in the 2400s. Fun stuff, this volatility. Even Steven will try to do better tomorrow.
Anyway, a tough day but the market remains on plan. I just wish I’d managed it better. But that takes bug eyed attention in-day, and quality of life by seeing to important things takes precedence. It’s just one day and hopefully the Even Steven balancing act will be back in play until greater trends are revealed.
* I had that thought despite the fact that we had an NFTRH update showing an important negative divergence to yesterday’s wonder rally. Well?
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