Post Traumatic Friday – Don't Catch Those Knives!
Wheeeee – what a ride!
As our Members well know, we had a classic "spitting cobra" pattern on our charts and we knew this week was the inflection and we knew it was likely to be down which is why, on Monday, we welcomed the greater fools to the BS Futures rally and Tuesday we discussed gravity, parabolas and what would happen when the Fed cut the thrust to our market rocket and by Wednesday morning, although I titled the column "Will We Hold It Wednesday – Fed Edition," my opening comment was:
Oh who am I kidding, we're already shorting!
We shorted the Nas futures at 3,000 (now 1,591) and we shorted the Russell Futures at 998.20 (now 957) and we shorted the oil at $99 (now $95) and, of course, we took all sorts of short positions in our Short-Term Portfolio and yesterday I called for cashing those in at noon, and we missed the final, afternoon drop but we used that opportunity to flip long on the Dow (DIA), GLD and TLT – playing for at least a bounce after two days of market carnage.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.