Well, I’m annoyed. Before we get to that vital subject, let me offer an observation about the equity market in general.
We start with the Dow, which had yet another record high close at 51,563. Over this week, it has been gaining strength, in spite of all logic, reason, and respect for economic and data-based sense. It just…………..keeps……………going.
The S&P 500 futures, in sharp contrast to this, have been weakening over the same timespan. Even with the gargantuan bounce on Thursday, all it managed to achieve was a lower high.
The /NQ looks the sickest of all. This makes sense, since tech stocks are the most overvalued segment of an overall overvalued market. The NASDAQ also had a nauseating and inexplicable bounce on Thursday, but as I’m typing this on Thursday evening, that entire bounce has already been laid waste.
Now let’s get to why I’m annoyed, which is why we’re all here, isn’t it?
First off, a market that goes up almost every single day since March 31st can get on one’s nerves. Second, it has become virtually the “norm” for the market to tease and excite the bears during the overnight session only for everything red to turn into green in the day session.
I have been dialing risk lower and lower, since getting blown out of positions gets tiresome in a big hurry. Of the five accounts I manage for myself, one of them is all cash (pathetic), one of them has a mere three positions and 80% cash (again, pathetic!), and the other three are overall about 80%. Wimpy! Weak! Lame!
The only ballsy stuff I managed to conjure up Thursday was twofold: first, I entered a new position of SMH puts which is by far my largest options position now, and second, I bought a decent quantity of SOXS (triple-bearish ETF against semiconductors). I bought into the position at 5.10 and, for the moment, it’s going well.
The next big event is Friday morning, an hour before the open, by way of the jobs report. If the market gods are listening, I’d really appreciate a nice, strong hit to the bond market. Thank you in advance!
