I hear often in your analysis that you are scaling out of Long and into Short or vice versa. Does not mean you would own 2 opposite securities at the “SAME” time? For example would you ever have a $10,000 position in TQQQ and also a $15,000 position in SQQQ if you feel market is leaning towards the bearish side. In essense you would have a NET short postion of $5000 using SQQQ since the other positons essentially cancels each other out. If yes then what is the advantage having it this way rather than selling ALL $10,000 worth of TQQQ and owning $5000 worth of SQQQ. I am just trying to understand if there is any logic in owning 2 securities that are correlated exactly opposite of each other. I can see it would kind of make sense if the the inverse correlation is not exactly the same such as holding $10000 in PSQ and also owning $10000 in TQQQ but even in this case, one can simply scale down to $6666 of TQQQ and not owning any PSQ to have the same effect. Anyway, I would love to hear your thoughts on this topic.

In a way I’m permabearish, but I tend to agree with him. Eventually this market is going to come back towards the long term mean valuations, but its not going to happen overnight, and we’ve had a mini crash the last two months. Additionally, as we saw today, and as we saw in 2008/9, when things start to fall apart, the government/Fed will do whatever they can to stop a decline. It may ultimately not work, but it slows down the process and creates so countertrend rallies.

One of my other favorite ( David Settle)Technicians agrees with you that we probably see a pullback tomorrow and or Friday but he thinks we resume up after that

Also from Barrons
Jonathan Krinsky, chief market technician at Bay Crest Partners, contends it is.

Yes, the Dow has climbed 525.39 points, or 2.1%, to 25,274.12, while the S&P 500 has gained 1.8% to 2730.83, and the Nasdaq Composite has jumped 2.4% to 7249.12.

So what does Krinsky see that has him worried? For starters, there is the so-called NYSE Tick Index, which measures the number of securities trading on an uptick minus those trading on a downtick. At 12:05 today, just after Powell started speaking, it hit 1,648. That is only the 12th time since 2004 that the index has traded over 1,600, according to Krinsky. It’s also coming after three days of gains, a situation that’s only happened eight times before. The S&P 500 has averaged a drop of 0.6% for the five days after such occurrences. “After a few days of rallying, an extreme high TICK can indicate a final buyer capitulation i.e. ‘get me in,’ or shorts ‘get me out,’” Krinsky explains.

But there is more than just the extreme tick readings. Krinsky also notes that the S&P 500 will hit its downtrend resistance at around 2750, and then the 200-day moving average at 2761. “Our sense is that this rally stalls out somewhere in that zone in the next day or two,” Krinsky writes.

“Folks, quit listening to the perma bears. Yes the most aggressive rallies occur in bear markets but no bear market rally starts as a successful retest of a crash decline. Bear market rallies just sling shot out of severely oversold conditions.

We have a classic bull market correction behavior, not bear market behavior. And now we are set up with massive bearish sentiment that can drive the market higher for many months.”