I’ll start off by saying how relieved I was not to wake up to a /NQ down 800 points. As you hopefully know at this late hour, ORCL had their earnings report on Wednesday evening and after issuing it, they totally ate it.
It turn, the /NQ plunged about 500 points, AFTER I had been terrorized out of my big short positions by yesterday’s mega-rally and took a 1.3% haircut to my portfolio. Mercifully, the markets have trimmed their losses, giving me a fair chance to bulk up again at reasonable prices.
What especially pisses me off and makes me think I need to get a few more spheres surgically embedded into the ol’ sack, is that the /NQ’s “breakout” was by about a penny and lasted about as long as a high school junior on a phenomenally success prom night.
Looking across the board, the market exhausted itself with its “Yay! More QE!” rally yesterday and looks poised to poop its pampers. The /ES, shown below on a longer time horizon, likewise made a new medium-term “high” for a millisecond or two before deciding that a country bankrupting itself maybe isn’t a genius idea.
The simple fact is that the gap wasn’t violated. Looking at the QQQ, the gap I’ve highlighted at 629.85 and took place between November 3 and 4, has not once been breached. The market is as bearish now as it was yesterday, yet without the looming uncertainty of Powell lumbering up to podium, as he did, and announcing hundreds of billions of dollars of Fed jism for the bulls (while simultaneously declaring that, nope, it wasn’t QE at all, but just a way to make sure the ol’ Fed plumbing works smoothly).
I am woefully underexposed and will seek to judiciously remedy this situation soon.
What a dope.
