How about the fact it’s been going straight up for weeks on end?
Or the fact that what the Fed minutes revealed was no surprise but any excuse for a sell-off was prompted by traders itching to short or recover some of their losses from being short?
Generally the first weeks of April are week as cash in deployed raising money for taxes due April 15th. This is usually over by the 13th so I expect sometime next week a vicious rally to begin.
We are nibbling a little on beaten up sectors which are not doing too badly today. Lightening up on some performers.
April caught a lot of people flat opening up big with new money looking to get deployed. Shorts jumped on that. We covered our bearish short piece of our SPY bear spread and now just long the SPY 138 puts. It’s been hard to make money short but we still try.
At the moment everything happening today is fairly predictable although painful for longs. Hold the course and get ready to buy next week for the last two weeks of April should be better than the first two.