Futures are lower by more than 400. The session was doomed to begin with, starting with the overnight session. Things went from bad to worse this morning, following some downgrades in the semis and the CAT earnings miss.
While earnings are important, the key to stopping any market squall is psychology. As of this moment, there is a mania about to set hold in the marketplace. If this persists, anything could happen: shattered windows, broken elevators, men without wings flying in the air.
I made two errors yesterday and for that I am deeply regretful this morning.
Because I’ve been managing some personal affairs, I have been busy, and at times, unable to trade. I didn’t stop out of CPHI, which I should not own in the first place. Secondly, I sold my Nasdaq hedge, SQQQ. There was a third mistake, which was going long 6 shippers, but we won’t talk about that now. Overall, I think my measured tone, heading into today 65% cash, has been good. However, after speaking to a few dozen Exodus members during live conferences, I get the feeling that, at times, you ignore my cash position and instead barrel into my picks with full retarded vigor.
You can’t keep behaving the way you do and think you could get away with it.
Best thing you can do before a trading day like this is to prepare. Have yourselves a hearty breakfast. I suggest listening to WQXR- classical NY, two 6 minute soft boiled eggs, a piece of toast, and some earl grey tea with a teaspoon filled with local honey. If you’re unable to be a gymFAG and build muscles, the least you can do it eat well and good.
Here’s the problem with stocks — the fucking SOX.
In order to stocks to bottom, the semis needs to stabilize and recover. But it’s real hard to do that in the middle of a trade war with China.
Welcome to the new paradigm.
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I don’t think a 20 VIX will hold for long