Well, I knew it wouldn’t last. I was having way too much fun last week for the market to just keep burning to the ground. I will say, however, it’s not a surprise. We got within spitting distance of a major Fib level (circle).
As I’m typing this, the /ES is up about 0.9%, the /NQ about 1.1%, and the /RTY about 1.4%. The /ES, below, is revving up to complete a bullish base.
Over the course of yesterday and today, I have lightened up considerably. Here is my present portfolio construction:
- 16 positions, all bearish, and none expiring earlier than January 19th;
- About 33% of the account in cash;
- Worst loss is my new position of MSTR (-6%) and best gainer remains Region Financial (+73%).
It’s not as exciting to be one-third in cash, but I’ve absolutely busted my HUMP rebuilding my profits for the year, and I could do without “excitement”. If we can recover to more appealing price levels, I’ll be glad to turn into nasty-old-bear mode. As it is now, I’m holding back and waiting to see if we get any kind of strong signals from the mass of earnings coming out.
