I never ‘WANT’ markets to drop, but we have had it pretty damn good for a while and I would not be surprised by a strong correction.
There are many real reasons –
1. Interest rates rising
2. Homebuilders rolling over
3. GOOD (yep not bad) economic data out of Europe – by good I mean it’s been so bad for so long and nobody cared that it might be a hint of good news that surfaces big sellers.
I have my own ‘#Lindzanity’ sentiment indicators going off as well:
1. My personal poster stocks for ‘Froth’ on Stocktwits have been $INO $VRNG $BBRY and $AMRN – people can’t seem to get enough chatter about them. I used to get upset hearing the chatter, now I dip in and read a few minutes to gauge the ‘froth’. It has been extreme.
2. Carl Icahn has made so much money that it’s time to use Twitter to toy around.
3. I have been on CNBC Fast Money now twice in two weeks and have really enjoyed it. I am so grateful to be able to talk about the things I am passionate about – mainly Stocktwits and ‘The Human Ticker’. here is the clip:
So what is one to do with this data?
I actually faded myself yesterday adding some $SDS $SPY Puts and short $SPY (live on Stocktwits). I am not selling my winners down to get hedged this time. I will have a quick trigger if the markets whip higher but have a feeling I can build a position and trade around this short over the next month or two.