The rationale for owning high beta, small caps alongside a pastiche of inverse ETFs and shorts is for days like this. It’s all in the allocation and it’s a delicate game of trying to balance one bias against the other. In the case of my DRIP and RUSS positions: they’re obviously a gamble on a collapse in crude. I paired that with AAL because when said collapse occurs, airlines will outperform.
Then I have a position in LABD, which is 3x short biotech. A bet against the hottest sector can be a wild one, so I have wild upside longs like VUZI and VERI to go with it.
I am short NVDA and BAC — because the former is leadership and the latter is simply a false construct of ZIRP and should get nailed if the yield curve continues to contract. My long position in UCTT is a contract manufacturer for chips and also OLEDs — the hottest segment in the market. It is an effective hedge against NVDA and small cap enough to outperform it on up days like today.
My volatility bet, long UVXY, is the riskiest gamble on the VIX index, essentially betting on surprise rape. To hedge this, I needed to be long the riskiest and most potential upsided longs. Both HMNY and FIZZ fit the bill just fine, with the latter being a company that could receive a takeover bid at any moment.
Although it might not seem like it to the untrained eye, there is a method to my positioning and I do not intend to come out breakeven — as one of you assholes suggested. The way this is supposed to work is I’d take profits on my shorts or longs at an inflection point and then let the other side roll. Since I was unsure and plainly stated that there was a window of opportunity for bears, nothing is set in stone, I loaded up on both longs and shorts, betting on some volatility.
Oh, what the fuck am I explaining anything to the likes of you? It’s not like you can understand more than 10 minutes into the future. I’m very amused by the newly minted passive investment fags out there these days, a whole cabal of absolute faggots who’ve been spoiled by $9 VIX, thinking MCD and CAT are gonna go up forever. A day of reckoning waits for you in the tall grass. It won’t be long before you’ve been stripped of skin and muscle down to the bone, wondering how the fuck you thought it was a fine idea to buy and die.
Oh, BTC is up a gazillion dollars today. Fresh highs, +50% over the past week!If you enjoy the content at iBankCoin, please follow us on Twitter