Short Squeeze

There was no money to be made shorting the market in late August when everyone was bearish. That made it very likely we would have a bounce.

We have gotten a short squeeze bounce and the market is now up 5% in three days. If the rally continued at this pace, the S&P 500 would hit a new all time high by the end of the month.

Obviously, that is not going to happen. Sometime soon, the market will put in a top and roll over again.

So far today the equity put call buying ratio is about 0.5. Investors have been quick to embrace this rally!

I am taking the opportunity to add to short positions in MGM, WGO, HOG, etc. This is also a good time to be buying the long bond again.