Just Be Right

I get the biggest kick out of the market, I love telegraphing ideas and thoughts on Twitter and Stocktwits and just watching and maybe contributing to the the sentiment. I don’t follow picks, I do my own work, but I love the exchange of the thought process, it’s priceless.

When the market is down, you sometimes hear crickets, when the market is up, it’s like an arcade on crack. This is natural human behavior. People like to feel good, people love to win, people love to be right.

When the market is down (unless you know how to short, I love two sided markets), folks are crushed emotionally. So normal.

Then you get a day like today. Glorious. The S&P rallied about 41 points off the lows. Rallies enable amnesia, we forget the losses. I forget mine even though it may have been thirty minutes ago and I hate myself. Back in the day it took months to get a move like that. Thank you algorithms. Algos work for you and against you. Lately, they have worked against you, but not today. I care nary wit what makes me money or gets me to the finish line. Bernanke can print money, a bullshit headline out of Europe or just an over sold technical bounce.

I rarely post entries any more on Stocktwits because I am wrapped up on my chat room with my subscribers. Today I posted an entry on $TNA at 30, it closed at 33+. The algos helped that trade. What the f**k goes up 22% in twenty five minutes? See the chart.

Don’t get me wrong, I love algorithms if I am on the right side. I hate them if I’m not.

I take that back, I hate algos, I think they provide way more volatility than liquidity. My good buddy Mike (who has made countless millions trading) who I trade with daily, thinks it sucks too. His thought is to move spreads to a nickel, algos are done. Screw best execution, it works for algo programs, not us. It’s just not a real market. I will defend this opinion even though I have made a ton short the last few weeks as a result. I ended green after being down today because of this.

Mary Shapiro at the SEC still cant figure out the short sale rule, maybe some day she will attack this issue, until then expect epic moves that will cripple you or make you wealthy in a day.

Until you figure out algorithms though, don’t fuck with my 3X ETF’s. Go bulls,…or bears…..or whatever. Just be right.

$qqq, $SPY, $xlf, $aapl

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