Swaggy was 50% cash, 50% long going into the 3-day weekend. The DOW is up 320, S&P up 40, and NASDAQ up 225, a glorious thing to see after celebrating America over the weekend. Chinese stonks have absolutely massacred any shorts that were still out there. BABA, BIDU, and GSX are leaders here.
Many are still suspecting this market could trade lower. Sure, that might actually make sense to see the market dip. Buying and holding at these levels is daring the the stonk market gods to fuck with you. Those that entered positions and went long before the weekend came out extremely profitable today. Where were you when everyone was shilling “covid cases increasing”, “hospitals full”, “everyone exiting their position before a long weekend”, “nobody wants to hold in these conditions”. I’ve said this before, but the market does not care about COVID, that is, until it finally does. At which point, when the market is reacting to COVID news we will be living in a post-apocalyptic world where money will be meaningless and you’re wearing animal pelts to keep warm.
The markets want to continue up. In my opinion we will see more green before we see red, of course, pending any impactful news. Earnings season is right around the corner which will truly reveal the impact of the virus over the last several months. The data might bring us down to earth, but if it comes out as “eh it’s not as bad as we thought” then watch for bigly green going into the fall.
I’ll be back with some option flow updates later today.