[11.10 US Stock Market Review] I started "swing shorting" on October 30, with the opening at 6860 that day, and now the closing on November 10 is 6832. In these few trading days, the market has seen significant drops and rebounds, but overall, the market is still down compared to when I started shorting—at least for now, my "swing shorting" strategy is correct. (1)

The reason I’m posting this tweet is not to prove that I’m "right," but to illustrate that when it comes to "swing" markets, one cannot use an intraday or short-term perspective. For example, just because there was a big rebound today, it doesn’t mean a bull market has arrived and new highs are imminent; one quickly forgets a basic fact: the market is lower than where I started shorting... What I want to express more is that despite today’s big rebound, my swing shorting logic that started on October 30 has not changed.

I started shorting at 10:30, and I set how to determine if my "swing" was wrong—if the market hits a new high above 6920! This is also about a 1% stop-loss from my short entry at around 6860... I placed my bet and then waited for the market to tell me whether I was right or wrong in the end. It's that simple. (3)

So, from October 30th to today, my belief in "swing shorting" has not changed at all, and as mentioned above, it has been correct so far. However, I currently have a specific trading issue with this swing, which is that I did not choose the right individual stocks, affecting my returns and resulting in a loss for this swing so far... This is my problem, not that I am "shorting" (4)

So what exactly is the rebound in the US stock market today? Simply put, it's a very typical factor trading strategy by quantitative funds: going long on $xlk while shorting $xlp. Since the Jackson Hole meeting in August, this has basically been the strategy. However, I believe that times have changed, and after November, this strategy may not work as well. So doing this strategy again today is just a "rebound" (5)

So my current position is very simple, it's the opposite of the "short-term" quantitative fund—because I am doing "swing trading". Since the short-term quantitative fund is "long $xlk + short xlp", my swing strategy is "short xlK + long xlp". That's the logic behind it. (end)

Supplementary example: Because my swing strategy is as above, even though I know there is an $amd investment meeting tomorrow, I still think I should short $amd and possibly add to my position tomorrow — because my swing strategy is to "short xlk"! The swing strategy will not change just because $amd has a meeting; it will only change when the market tells me to stop loss (as mentioned earlier).