Short-term trading can involve a lot of discretion.
In other words … skill.
You learn to ‘lean’ into a particular belief due to subtle and nuanced reasons that you yourself may find difficult to explain. Sometimes, you adopt a belief simply because you do not want to be ‘surprised’ by the markets.
I find myself at such a point now.
I think a stock market correction may be near.
Now to be sure, we are bullish on stocks for the long-term. We are bullish on stocks on a periodicity of 1 to 18 days. We maintain many of our long positions.
And I still think a stock market correction may be near.
Why do I believe this?
Well, for one thing … our strategies are just printing higher … and higher … and higher … day … after day …. …. after day. In fact, I told individuals as recent as last night … “Well … I wouldn’t be surprised to see these strategies to pull back just a bit here on a typical mean reversion“. And what happened today?
They printed higher.
We remain bullish on many of our instruments and on the stock market indices in particular.