It is with some amount of resignation that I’m beginning to believe that the bull run of the last 13 days is petering out.
We enjoyed it. In point of fact, it would have done my portfolio better if the rally in stocks had continued as we have let our bullish exposure run, un-hedged. However, my boss, is the mark. Price. I follow the directions and dictates of price.
With retail sales stagnant, and with the news of a fresh low in PPI numbers the momentum of this latest rally is beginning to fade. What tomorrow brings in this market, we never know. Especially within this ‘meat-grinder’ of a stock market that we all have had to endure as of late.
While we can never predict with absolute certainty what the future holds, I do believe that now is not really a time to be thinking about doing anything on the long-side … un-hedged. Personally, if I was looking at favored short positions? Now might be the time to press on them with conviction.