Surprising as it may seem, no one has ever asked me the question, "Nathaniel, boxers or briefs?" Well the answer is both. I enjoy the freedom and sexiness of boxers (they make me feel like a bad-boy). And underneath I wear a pair of tighty-whiteys, which provide me with some support and an extra layer of security (I've been the victim of the pants on the ground from behind for most of my childhood and adult life). Fool me once, shame on you; fool me 20-25 times, I wear an extra pair of tight underwear under the boxers.
While in Japan; I wore nothing but Kimonos, going "Genghis Khan" (as the call it in the East) with nothing underneath. Ridding myself of undershorts has changed me in a way. I feel truly free for the first time in my life, and decided to walk the streets of NYC in nothing but my Kimono from here on.
Looking at my portfolio, I'm sort of surprised by it's lack of shorts as of late also. I was actually building long positions last week and at today’s (Monday) close. I have several reasons for doing so, right or wrong here are a few.
1. We are range bound, the trend over the past couple of weeks is neutral until SPX 1100 or 1040 is taken out.
2. Many indicators I use have been showing divergence and possible signs that accumulation may be taking place.
3. I don't trust the flash crash. Something sneaky was going on, and I don't think most retail bears benefited much from it.
4. EW – Lots of talk of P3. I rarely visit any EW blogs, but did today. I see many counts that have 1-2,1-2,1-2 down. I find that often when you have a 1-2,1-2,1-2 in any direction, something else is probably going on, maybe a series of abc-x-abc. Be prepared for a nasty surprise. NeoWave is not necessarily banking on a vicious decline right now, some counts have us breaking the April high.
5. Lots of bearishness in the news, and my mom talking about selling everything. I told her to lighten up around SPX 1200 and she laughed at me. Now she is ready to sell everything, that also makes me a nervous bear.
6. Here are some charts.
SPX is a "Sell" but we are sitting on some support right now.
Surprisingly SSO is still a "Buy" also sitting on support.
More surprisingly FAS is still a "Buy" sitting on support.
FAZ is a "SELL" bumping some resistance.
Now we could easily break support and have a really nice sell signal on SSO, FAS and other bullish ETF's; but if I want to go long, this looks like a good risk reward place to do so.
If my long positions go "Genghis Khan" on my portfolio (which may very well happen), I have my stops and a couple of part time jobs lined up with my neighbor Dr. Ramon. Always have a plan when trading.