Today's Market Comment

admin

It is just amazing! I cannot believe but this is what happens today that the market has changed from extremely oversold to extremely overbought within 2 days. I'm not sure I have ever seen this kind of change before. Suddenly the sky is crystally blue and clear and all the concerns are gone? It is beyond me to understand. But I stick to my predefined plan. As I said, I would start to hedge when S&P approached 2100. But now the deal has become  much better for me as I could do hedges at a much better price since S&P jumped to as high as 2112 today. I've virtually added hedges for all my long positions. In addition, I also buy SDS for shorting S&P as I cannot believe S&P can continue to go up for long. I don't know who would buy at this level, considering S&P is SOOOOO overbought from almost all the technical indicators. I'd even think buying now was like an act of stupidity. So I think this may continue to be part of prolonged short squeeze that more people are forced to buy to cover. Of course, I could be wrong and it may turn out that I'm the one of stupidity that I hedged my long positions and miss the next big leg up. So be it. At this market, safety is much more important than making money. At least I can sleep better knowing that my downsize is protected.