DUMB and DUMBER
It is just going to be impossible for me to behave myself after today. Our fearless leader is just a blockhead plain and simple. Why do I constantly take shots at him? I do it because I don't want to live elsewhere but he is ruining this country, and I am too old to be effected by an interns mistakes that mess up my life. It really only matters just in forming big picture views, we can't really trade off whether we like or do not like a particular political figure. However, forming a longer term view on things does require taking these types of things into consideration.
Every time Barry opens his mouth it seems he says or does something more stupid than what he did previously.I stated in the last post to ignore news stories because they typically are erroneous, but occasionally there is one that will be an accurate driver of a market move. Well sure enough, here is a live example of where the catalyst I have been talking about showed up, another bonehead move by our leader. You can see from the intraday SP chart above, that when he started speaking a huge selloff started. This caught me by suprise, you can see we were just meandering sideways after the PPT yesterday rescue. Then boom, a waterfall. Readers of this blog know I have been sitting short for a few days now and got a windfall today across the board. I exited all my shorts before the close just in case the PPT showed up for the 89th day in a row, they did not.
There used to be a day trade when he first took office, where you just had to wait for him to talk live, and just short the E mini SP 500 at the market, and then put in a limit order for 10 points. This trade worked I recall 15 times in a row. It made no sense but I did it a few times just for fun. It did stop working, so I moved on.
Nothing has worked on the sell side for months now, so it is possible times may be a changing. I do believe we have a top here, whether it is the top or not, who knows. We should move down some here for a few weeks at the very least, so the short side should be the correct side for the near term. Maybe we will fall into a nice buy setup for another run for the roses, we will just have to wait and see about that.
If you look at the above Naz chart, we are rolling over and do have confirmation on the momentum oscillators, but you can see we are in another buy zone for the first panel setup. When trend changes occur this first panel will have this look and the trade will fail, but until that happens these dips are still buys. The problem I see is that so many of the SP 500 stocks are in sell patterns not buys, so there is alot of underlying weakness here that has been brewing. I heard a technical analyst today so he was concerned due to the technical breakdowns he was seeing. I would argue that when a market has been driven completely by manipulation of the futures indexes, that technicals and fundamentals mean nothing. It was not going up based on them so why should it go down based on them?
I was short 9 individual stocks all exited today for a profit, I will show the best and worst of them to conclude this post. Keep in mind that just being short a thousand shares of a stock adds up to alot if you can get a couple dollars per share profit this quickly. For now look to sell short term rallies.
I exited this one early due to how much it was lagging the whole market meltdown, just taking a small gain out of it.
Good trading to everyone