On our last episode I was just beginning to build back into our long positions, taking a position in NFLX, and reversing TXT from the short side to the long side, among other maneuvers. Since then the accumulation of long positions has only increased given that this is a verifiable, legitimate, testosterone induced, shit kicking, fence jumping bull.
What's interesting to observe is how investors are being misled by obnoxiously puffed up statistics, mostly related to obscure areas of sentiment and technical analysis that have no relevance. It's purely drivel. The important point, however, is not necessarily that this analysis is being disseminated in rapid fire form. Rather, it's that there is such an appetite for this information that those who create it have a willing audience. This is the tell.
Investors currently or only too happy to jump back onto the bearish bandwagon. I tried it a couple weeks back for a short time and it actually felt good. There is a recency bias coming out of the mess equity markets experienced in December that makes the decision to get bearish an easy one. It's like walking downhill. Takes little effort and you feel like you're getting to your destination faster. As so often is the case in the markets, however, what is obvious and easy is obviously wrong.
With that said, the markets will likely keep pressing to the upside here until investors get that this is a bull market that is headed to new highs relatively quickly.
How long is too long? There's no such thing as too long in a bull market.
This week we've added MU, BMY, more NFLX and ETFC. This is in addition to the MSFT and QQQ we took on on the first day of February. Plan on to continue the buying binge in one or two other names this morning.
We've only just begun to live.
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