Well, in spite of its reputation as a “crash month” (1929, 1987, 1990, 2008 – – and that’s just off the top of my head!) October has certainly sucked out loud for equity bears like me. Yesterday (that is, Wednesday) was a breath of fresh air, since I was not only up, but I was up four times as much as the S&P was down. Thursday, however, completely undid that progress, which is frustrating, to put it kindly. It makes me wonder what all this hard work is for if we can’t get a persistent downtrend in place.
In spite of my bearishness, I don’t short everything just because I think it’s “expensive”. On the contrary, I am completely patterns-based. When I looked at GOOGL, AMZN, and MSFT before earnings were announced, my temptation to short them was exactly zero. As I said on my Tastytrade show before the closing bell, there was “nothing bearish” about any of them. Good thing, too, because as you know by now, they are all exploding upward, and – – just in case they needed it – – Page, Brin, and Bezos are now $8 billion richer than they were before the closing bell.
