Has the following ever happened to you? – – You are speaking with someone, and every time you start to speak, he speaks. You both stop. Then you both start to try to speak again, only to stop again. It is, at once, annoying and amusing. Sometimes the same thing happens when you're at an intersection, and someone else is at the same 4-way stop, and the two of you keep inching forward, urging the other to go.
By and large, humans are in synch with each other. We can carry on rapid-fire conversations with the ease and grace of a good tennis match. But once in a great while, we encounter a person who, for whatever reason, is completely "in-phase" with us (in a bad way!) and with whom a normal conversation seems impossible.
It's that way with the market. My desire is to be "in synch" with it. If the market is up, and you have a bad day – – – and then the market is down, and you have another bad day – – it's a miserable feeling.
A day like today is quite the opposite. Because here's the remarkable set of facts:
- I entered today 100% short. Not 99%. 100%. One. Hundred. Percent.
- And I'm making fat profits!
How is this possible? Because (a) I harvested my profits on any positions I felt had petered out, and luckily I did so before the rally really kicked in; (b) more importantly, I had precious metal shorts up the yin-yang, and gold just took a big ol' dump today. I got rid of about 50 positions, so the quantity of entries I have in MarketMatrix has gone from ridiculous to just silly.
This is a good feeling. I'm in synch. And I want to stay in synch.
As a side note, once the /ES rallied back to 774, I shorted the it like mad. We'll see if Obama's speech tonight confirms the usefulness of the patented EZ Investment Guide.
Shazam.
