Busy day over at Eagle Bay Capital on Thursday. Not a lot of tweets or blog posts. But I figured I’d take a few minutes to share some thoughts on this market.
I came into the week not really trusting last week’s rally. The roll over in regional banks on Monday caught my attention. That red candle really stood out to me, so we took advantage of the short side. Wednesday morning shorts were working great. The US Stock Market seemed vulnerable to me and destined to fail. This was pre-fed minutes. At the time it seemed like a good idea to press the shorts and try to hit it out of the park. For a short period I had the biggest short position that I’ve had on in a while. But it didn’t work. The market stayed strong going into the end of the day. So we pulled out and admitted we were wrong (see here).
The only shorts that kept working today were in regional banks. It’s the only place where I’ve been consistently right this week. I figured the rest of the market would follow, but unlce ben’s comments were apparently too much. The market strength is out of control right now. It’s hard to fight it. So we won’t. At least for now…
Make sure to check out the video that Dr. Phil Pearlman and I will be putting together on Friday after the close. I think it’ll be a good one.
Tags: $KRE $SPY