I've gotta admit, I feel like a bad ass today. Over the past year I've really felt in synch with the market, but it's getting to the point of "ridiculousness". I have to keep telling myself to stay psychologically balanced and not let all the trading success get to me head. When a trader thinks he owns the market, that's when trouble is about to start. I am doing my best to keep the ego in check and not do anything crazy like start taking on bigger position size trades. As the undefeated New England Patriots like to say, it's time for some humble pie . . .
Who am I kidding, I have been on a freakin' roll. That capitulation prediction this morning was brilliant. Who da man?
Okay, now that I've got that off my chest, let's get to work. As noted, I unloaded my shorts and took on a few long positions. That does not mean my short bias has been lifted. To the contrary, I am still bearish on this market. However, I do foresee an oversold bounce. While I've taken a few small long positions in relatively healthy stocks, I am not playing the bounce with big long bets. Instead, I will use the bounce to reload on shorts. See you soon, DRYS. We have not broken up, we are only on a break.
If anybody is interested in a private chat, I can do a few tomorrow night after 9pm eastern time. See this post for details.