I’m in a situation that five hours ago, didn’t seem like a strong possibility and that is being 100% cash.
The futures were looking great, and even 30 minutes into the trading session, the selling really hadn’t picked up that much steam, but as we continue to see, the market cannot hold on to its gains, and oil keeps dragging the market lower (now down about 20% on the year already). So I went from having SSO, AAPL, and DIS to open the day up, to selling all three of them and taking my profits as a result.
I gave a round to a couple of intraday trades, but those couldn’t hold water so I bailed on them as well.
I still think a massive short squeeze is coming, and the longer it is put off, the greater it will be. That doesn’t mean I think we are going back to new highs again, but the market has to have a relief rally here at some point just to work off the oversold conditions.
Right now though… cash, until the market shows otherwise, is the best option.
