Of the old trading floor sayings, I always liked "when ducks quack, feed 'em". That meant, when the buyers are aggressively buying stock, and equities are rising, it's your chance to give them some of your long.
Now, this was spoken as a floor trader, which entailed something a little different from investing. When I was long gamma, I would need to sell stock into rallies in order to rebalance my risk - see my video on gamma scalping/short squeezes for more on this.
These days there are certainly a lot of ducks quacking - equities seem to be on a tear, despite all the negative sentiment out there. I've been talking for months about how most folks are just on the wrong side of this rally, sitting in cash and doubting any further upside. Well, when everyone's on the same side of the boat....(cue Hans's broken record).
But perhaps in some areas it's never bad to feed those ducks. The VIX now has a 16 handle, and while I've never used the VIX as a sign of market tops (I wrote an article about this folly in the Globe and Mail once), some of these tech names just might be ahead of themselves, A.I. hype be damned. But we shall see as big companies continue to report in the next few weeks.
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