Better on Red? - 9/22/20

I think I trade better on red days. On my intra-day trades where I'm flipping stuff around and not sharing it here. I need to take better notes, but it feels like I'm better on red. Maybe I'm better on higher volatility - which tends to happen on red. I think I'll add it to my paper notebook that I keep each and every day. How did you fare yesterday? Was it a scary day? Or were you positioned ahead of the drop and ready to act in either direction depending on how the day went? 

To be perfectly clear, the time to act is before the move. Reduce your positions on rallies to be ready to buy again on the decline. Build up your positions on declines to be ready to sell on rallies. It's really hard to do, believe me. But it's the way to navigate the market and have consistent performance. Maybe that's important to you, maybe you're a home run hitter who can stomach striking out most of the time.

Anyhow, I'm now net long for the first time in a very long time. It's just to ride out any rally after the sharp selloff...and feels very strange!

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1) Spending in college towns:

2) If new home sales are flying, at record levels, but existing home sales are stalled...what does that mean? It means buyers are buying second homes, not "forever" homes. The rich are buying, as I've said a few times, not the regular folks. 

3) Covid is ticking back up in the USA. Thanks for being such a great leader, Donald!

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Yesterday was busy. I'm immediately regretting shorting the QQQ. Maybe I should have stuck with my SPY or IEUR short for another day instead. We'll see how the open goes before panicking. I'm still net long (modestly) and looking to short on strength.

Gold is the interesting one this morning. With Powell and Mnuchin set to "Bash Brothers" before Congress and talk about big checks and not inflating asset bubbles, stocks will likely inflate today and tomorrow. And the dollar will go down. Which is good for gold and treasuries. I'm full-ish on treasuries but have room for more gold.

Good luck. Enjoy the chop. Life's a bit different here at the lake this week: