To alleviate some pressure, I sold out of both AKS and CENX, taking small profits in both. I am tempted to start selling some of my bigger positions, like OXY and CLF. However, something tells me to chill the fuck out. Look, this is the 10th time the world has been ending in as many weeks. There is always panic and people get flushed out when they should be buying. I am not confident that the blood letting will stop here. But, I do know it’s a low probability trade to sell when there is blood flowing through the streets, unless of course this is the beginning of something horrific.
Here is my question to you? timing horrific moments on Wall street, are they low or high probability trades?
Basically, this is garden variety bullshit, especially since everyone is keen to the news. There are no hidden dragons that will pop out and shit fire down your necks. Instead, we have assholes on CNBC, and other media outlets, telling us to “go away in May”, offering stats about how bad June is for investors. Well, the facts do not back up such slanderous claims.
Here is the performance of SPY, during the month of June, dating back to 2003.
2003 1.07
2004 1.85
2005 0.15
2006 0.27
2007 -1.46
2008 -8.36
2009 -0.07
2010 -5.18
My advice to you is the same advice I am giving myself: calm the fuck down and go eat a sandwich.
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