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Refreshing My Tactical Strategy
Originally published Nov. 8 at 7:59 a.m. EDTOver the past several days, I have made several quick, tactical moves that I would like to recount and briefly explain.
As most are aware, I had been net short for some time, but last week (about midweek) I covered all of my index shorts into the seventh and eighth consecutive down days for the S&P 500.
On Thursday and Friday I began to accumulate a long position (for rental, trading purposes). As stocks faded on Friday I expanded that long position.
I did this in the belief that we faced a likely Clinton victory, negative investor sentiment had grown extreme, and we were deeply oversold. Furthermore, I expected a 30- to 60-handle rally in the S&P.