Stocks Deteriorate into the Close, Led Lower by High Risk Assets

All of the riskiest stocks are getting hammered again. A great man once said ‘show me where I’ll die and I won’t go there.’ Having managed money for nearly two decades, I can tell you, without equivocation, traders die in the riskiest stocks — and it’s always without warning. Things are going great — until you’re being ejected out from the car — through the windshield.

Case in point, IPOs

PTI -32%
ACIA -16%
SNDX -7%
TWLO -6%
EDIT -6%

In spite of the market only down a little, breadth is dreadful at 32% and a sundry of sectors are sharply lower.

How am I playing it?

I have 25% of my holdings in the FIST OF DEATH, short DB, ULTA, LFC, CAT and FCX. Additionally, I am long gold, via GLD, AUY, ABX and AU. Lastly, I am long TLT. The net result is a rather benign day for me. However, I am looking forward to the resumption of the no bid tape — which should provide comfort to those aboard the ark or in the mine.

Cash reserves is at 5%.