Head Space

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I live inside my own head most of the time. As such, I talk to myself almost constantly, asking questions of myself, and plotting out how to behave given certain circumstances.

The morning trek from bedroom to home office provides the opportunity for plenty of “Welp, boys, here we go” kinds of talks, as you might expect. There was an era when the persistent thought was, “Time to face the music” These days, I’m not quite so terrified of what I might see in the morning, and it recent days, this has been delightfully the case.

The counter-trend rally from June 16 through August 16 was stupid, pointless, dim-witted, idiotic, and unnecessary. It was created by a combination of media permabulls and, as I’ve dubbed it, the HDMI effect (He Doesn’t Mean It, referring to Jerome Powell). As the trio of “lurches” since August 16th plainly demonstrate, he absolutely DOES mean it, as the oh-so-masculine Tom Lee highlights here.

Indeed, I am delighted with how everything is going, with one notable exception. Gold, the so-called precious metal, left my trading world long ago, but I still own a certain amount of the physical stuff, having been convinced by the “stackers” out there what a smart thing it is to own. It’s clear now that gold is utter garbage, little different than holding SPY shares. They move practically tick-for-tick.

Among my 36 positions, what continues to dominate is ENERGY SHORTS, as my uber-bearish perspective (which seems freakish in this world) continues to pan out beautifully. Crude oil is doomed. Simple as that.

So here’s the most important thing I have to say right now. The tension I am feeling is because of this juxtaposition:

  1. On the one hand, consider we haven’t seen an uptick since last Monday, the market does seem very – – and here’s that moronic word, but I’ll use it – –oversold. And severely oversold markets scare me, for obvious reasons.
  2. On the OTHER hand, and it’s a far bigger hand, the patterns of my short positions are OH MY GOD gorgeous, and like I said yesterday, in spite of the annihilation the market has already experienced, I sincerely think this wipeout has only just begun.

What I’m trying to tell you is that I’m having one hell of a hard time parting ways with one thin dime of any of these positions. They are simply too sumptuous.

Meh. That’s my problem. Have a good day. And just remember, kids, bulls represent the worst of humanity. It’s nice that they’ve been put in their place, at least for now.