TMTB EOD

Note: I will be leaving shortly after the close and out for the day tomorrow. I’ll see you this weekend.

QQQs finished up close to 2% today as we had powerful counter-trend rally and short covering that drove large outperformance in highly shorted/underperforming stocks.  ARKK finished up 8% and SOX finished up 3%. Heard a lot of people today trying to attribute rally to a certain reason – mutual fund tax loss selling ending 10/31, QRA/Fed dovish, etc. In our view, the market’s tea leaves (including px action in tech and topping yields) were already pointing to a more bullish market environment the last 3 or 4 days despite the macro narrative not being overly supportive and sentiment being in the dumps, so whatever news came out was bound to be interpreted as positive –those tech tea leaves were enough for us to abandon our short this weekend and then to begin to flip bullish early yesterday.  Our mistake was not realizing a more positive disposition also meant we should lower our bar …