5/17 Recap

I don’t even know where to begin, we closed below the October low trend yesterday for the 3rd time in 3 weeks and every single time, we just gapped higher the next day. It’s just breaking every rule in regards to when to be short. I have honestly in all my life never seen anything like this. They always there is a first, and believe me the last decade where stocks went up 95% of the time was enough to never waste time on the short side, but this is something else. I’ve hedged 3x in the last month on trend breaks and you follow the rules and they just don’t matter anymore, to the short side, you can buy any stock at any price and it’s higher in no time, and we just have so much liquidity at this moment, that no matter how bad any news is, stocks just go up.

Home Depot yesterday reported their worst quarter in years. Look at the selloff that took place below and then look at today’s candle, like nothing ever happened. I can’t even tell you what is going on because none of it makes any sense, and if you try to rationalize it you’re wasting your time. The debt ceiling is nowhere near resolution, we’re less than 3 weeks from a potential catastrophe, and still stocks nor the VIX care.

Trends

CCL continues to be on fire up 7%, that name has been trending for some time. BABA reports tomorrow and still remains one of the most bullish names but it is up over 10% in the past week, so keep that in mind. I mentioned SNAP yesterday in my highlights and today its exploding higher after those call buys for next week yesterday.

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