Core Meltdown

FINALLY!!! I have been waiting for weeks for this. At long last, the small caps have broken beneath their range. Jesus H. Christ, what a grind that was!

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This is important because it well and truly has smashed the uptrend established from the March 23rd lows.

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The remarkable thing to me is how identical today is compared to yesterday. I’m only writing this an hour into the day, but, just like yesterday:

  1. The day started off with weak tech, and everything else strong;
  2. I was losing money right out of the gate, due largely to strong finance sector;
  3. covered a number of positions, pissing and moaning the whole time;
  4. regrouped, entering new shorts that I found appealing;
  5. My portfolio went from a loss to a gain

So, yeah, pretty weird. It’s like Groundhog Day. I also, incidentally, maxed out my options portfolio again. I am now long November puts on SPY, IWM, and EWZ.

One true champion I’ve got is semiconductor maker AMD, which I shorted on Wednesday morning out of nothing but spite. This position is up 16% in just a couple of days.

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