It's all so clear now... the market is never going down again! The insanity is just toooooo much. Many short term traders tend to be mean reversion traders, some consciously and some just because technical analysis tends to line up with mean reversion frequently. In any case, I am. What that means is simply that as the market gets more and more stretched in one direction or the other, I will place my directional trades with an expectation that the market will eventually revert to the mean.
That all makes this market absolutely crazy for me. If you haven't noticed, today marks the 11th day in a row that the Nasdaq, as measured by this picture of QQQQ, has seen a gain. I might be missing something, but in the 10 years of data that I have on the Q's I don't ever see that having happened. This is a once in 10 year occurrence.
Over the past several days I have gradually accumulated several short positions and am watching them get slowly obliterated. It's always interesting to see something that only happens once in a lifetime, but this is one I would rather have skipped.
Good Trading...
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