Markets Are Deteriorating into the Bell

Who else is working on a Friday after noon, ahead of a drunken week of holiday festivities? “The Fly” is a man of the people.

I thought we’d get a rally. Instead, it looks like we’re getting the opposite, a rout into the bell. All of the little things that looked promising have been neutralized and are now starting to look grey. Very soon, the blackness of this market will infect everything, thrusting us into an uncontrollable vortex of capital destruction.

At this stage, you have several choices.

1. Hold the line; pray for better times.

2. Hedge out market risk via index puts/inverse ETFs.

3. Go to cash and regroup.

I imagine many of you are contemplating the latter, after an arduous year of false starts and half-measures. Do not pity yourselves because others are losing too. That’s loser talk. If you want to make a difference in your portfolios and net worth, it begins with action. Hoping for better times isn’t an investable theme.

At the present, my largest positions are JAZZ, PAH and SHAK. Next week, inside of Exodus, I will be revealing my GARP index for 2016, something I update every 6 month’s, a quasi semi-annually managed portfolio of 15 stocks. Also, I am going to begin a short basket, in order to hedge against the systematic risk that my current portfolio has.

Let’s see what the final of hour spells: rebound or doom.