It was just about a month ago that investors were clamoring for a significant dip to get their allocations to the long side of risk right.
As of today, we have moved below 4000 on the SPX from a high of near 4200, giving investors exactly what they were looking for.
And therein lies the issue, among many others that have come up over the past few weeks.
Bull market reversals off extreme lows do not provide opportunity for those who missed the lows. Instead, they take opportunity from those who missed the lows by forcing them into uncomfortable buying decisions.
The more discomfort arises for those who missed the lows, the more legitimate the rally. It really is that simple.
True bull market market reversals force the issue.
They force discomfort.
They make investors chase obscene prices.
After being bullish off the October lows, the distribution patterns along with a myriad of other issues popping up have forced us into a bearish position for the first time since September.
The NVDA earnings induced rally we experience tomorrow will only provide an opportunity to add more short exposure before the next down leg occurs. Positions and plans forthcoming.
Looking forward to capitalizing on tomorrow's price action.
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