We rallied (on the DOW) from 12,500 to 12,735. In under two hours. Closed up 146 pts. Damn. Now that's the kind of rally I've been expecting. This is it, the big set-up. My expectation (and projecting the indexes is not my game) is that the DOW trades to 13K. Bottom to top- 500 pts. Point is: we go higher.
It doesn't really make much difference to me how high it trades. I got out of the way. To be specific, I was 3%+ (for the second day in a row) this afternoon when the rally began. Two hours later I had given every single cent back. As bad a taste as that leaves, the important thing is that I gave back TODAY'S profit not yesterday's profit or last year's profit. Really should have went long an index right away to hedge but did not do so.
Still expect that my account will be under attack just because I have a bearish bias, but I have no intention of standing on the train tracks net short just to get ran over. Just because I'm stubborn or something. Nope. I closed my beloved, recently doubled down BKS position (and a bunch of other shorts). My broker makes a bunch of money off of me and I should get better service.
The idea is flexibility. Especially on the short side where I'm quicker to take a profit. The longer you sit there telling yourself you're right while losing money the bigger the mistake becomes. When you go to cash you can think clearly. Maybe you were rightly positioned to begin with, in which case you can always re-enter.
Those who do not have the possibility (inevitability) of being wrong built in to their plan are losers.
I've been a loser before. It sucks.
My emotion is indignation. Don't fuck with me Mister Market. I'm keeping my profits.
Today the enemy brought significant reinforcements to a battle I was winning convincingly. My portfolio is a small force of like 50 insurgents, half of which have guns, mostly small sidearms. The shoes on our feet are worn through or made of leather. Our uniforms are disheveled and we're sleeping bivouacked in the mountains. We run when overwhelmed because we want to live to fight another day. Not die in a last stand.
Tonight I've got a ton of cash. Net long. Within a sneeze of my best month ever. Time to trim the account and pay myself a bonus. No time for a vacation though, I'm plotting my next attack.
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