The Big Short…

I don’t care how long you’ve been around watching the markets, this is getting unusual.

The long green bars – five in a row – are a strange and welcome sight.  Definitely not something you see everyday.  Why so welcome?  Let me answer that question with a question (I know, I’m clever like that).  Do you really think we’ll see six in a row?  Seven?  How often does that happen?

There’s lots of research being done by a lot of smart people in QuantWorld that says we are due for a pullback.  Woodshedder, Rob at Quantifiable Edges, and Chris at My Simple Quant, to name just a few, have all published studies indicating we might expect a little downdraft. 

I don’t do a lot of one-off studies, simply because I don’t have time.  But I will say that my regular systems have me “shorter than a mouse hole”, as they say.  I’ve been accumulating shorts and will likely have more on Monday if that market trends up at all.  My only regret is that I don’t have enough invested and have too much in cash. 

This is NOT a recommendation of course… just an observation.

Good Trading…