Trying to stay true to my contrarian roots, covered short stock positions at 9:15 this morning. S&P at 42.73, Nasdaq 100 at 13,991. All these in speculative trading accounts that use 3X leveraged ETF’s. Got out of 2/3 late Friday, that left us short 1X for today’s opening, then got out of balance this morning.
The trading model remains bearish, and we are looking for much lower levels later this year. For the moment just digesting the long capitulation before the FED meeting. One has to keep in mind that the FED has not done anything yet, even with the Balance Sheet which was the main factor behind the rally from August 2020.
Period or total irrationality…some noon-time thoughts...
That is what I see for the next six months, the FED has been totally irrational since August 2020, why, would they not get more irrational now that things are starting to unravel, and the Bubble has burst.