Getting in front of this a day early was a bad idea; even though we got that lovely late reversal yesterday on rising-volume.
I'm stretched-out on the market rack, pleading for mercy - pulling turducken bones out of my ass and cursing the horse I rode in on.
Be that way.
Europe and Asia were not so impressed by our late comeback and we pummelled stocks to within earshot of yesterday's lows at today's open. As of yet, aside from a couple St. Sebastian's of strength, were still loitering there as I write.
If we break it open and drive to lower lows here (for more than a brief moment) - I have to take my lumps and unload this new plate of crow claws. At least I didn't stick my neck out to any terrific degree and so far I have not gone crazy today adding much more.
Yep, I did add a little, you saw that. But that is because they are so resistant in going down. I let out more GOOG and started the first nibble of AAPL.
Seasonal strength should begin right about NOW (for crying out loud) - so let's see if the market is really washed-out here or not.
The put-to-call measure's today are extreme and like all good seasonal strength, there is the tendency for sellers to get their selling done early; thus allowing the market to drift higher on lackluster volume the rest of the holiday week.
We'll see if it plays out.
Either way, I have to unload these titans by the close of Friday. Then we'll see if any meaningful signals show up allowing further long-side trading.
If we crash now, we'll have to do the first day without me. And yes, Friday could potentially see such a thing. In a scenario where Europe and Asia are severely pummelled while this country eats smashed potato's tomorrow, we'll be opening Friday's affair with very little liquidity; so the chance of doom then would be real.
Otherwise...well, we see a normal seasonal strength rally, or bounce in this case, which by my watch is about 30 minutes from due (~11:30 est).
Good thing, since the NDX is taking out the early lows now, as I eat this paper. I'm standing on an island. Why do I still think this trade will work?
Because I am nuts.
Enjoy the bounce. Good trading.