What a completely bizarre day. In point of fact, the market from July 29 until today is completely bizarre. Just look at the S&P 500. Since the Leopold wipeout, the market came “full circle” as of last Thursday (matching the low) only to rip higher, almost totally undoing the marvelous plunge last Thursday. What a drag! Plus, it’s very hard to get in position and stay in position more than, oh, say, a day. Jesus!
The market is simply trendless. Indeed, you can go back HALF A YEAR and realize there’s been no net change in the S&P.
God willing, this damned rally has exhausted itself on the Nasdaq Composite.
As well as its narrower compatriot, the Nasdaq 100:
Where I was brutalized was semiconductors. I dumped my puts early this morning at a nasty loss (which went on to be TWICE as nasty, but I was out of it) and I re-entered a more sensibly-sized position at a vastly better price, ending the day with a nice profit on that one. This entire went up about 20% in just FOUR DAYS!!!!!!!!!!!
In just a few days, volatility has plunged by half. We were approaching 30, which seems to be the legal limit over the past decade for how high it is allowed to go, and now we’re back down to Epstein levels. Don’t get used to it.
I ended the day more conservatively positioned, with 30 positions and a commitment level a little over 100%. Today pretty much sucked, but I feel better about my situation now than I did last night.
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