On days like today all I can think about is the idiocy of my maintaining short positions. It's about 2:30 and the markets are up almost a full percent. My portfolio is treading water and has been dragging dead weight along with it for the past couple of months now. Should I just cut the cord and let them go? Probably. At least that's what every behavioral stock trading book would suggest I do: cut my losses and let my winners run. But for the moment I can't bring myself to do so. Nowadays its hard to find much confirming my bearish bias except for zerohedge, Hussman, and the BOND MARKET but nonetheless I am holding dearly to my shorts.
One thing that did catch my eye today and give me a glimmer of hope in my short positions (in the very short term) was the $VIX hitting a 5 year low and then sharply rebounding. If the VIX can close above its open of 14 it looks like a $VIX Connor reversal signal will be in place which accurately predicts a short term top 65 % of the time.
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