End of Year Chicanery

Volume is off by 40%, so view today as a gift, whereby Junior at the trading turret is permitted to run amok in an otherwise fully hedged account in his attempts to squeeze gamma. I would expect a final salvo in the market tomorrow, one of a profound bullish nature.

On the issue of the country and what to expect in 2022: we were up 28% this year and although small caps did poorly, with healthcare stocks off by 40% and many growth sectors off by a third, we still did quite well.

If forced to guess, I’d barter for a gap down during the first week of January. Best way to avoid a harsh bogging would be to enter 2022 with a large cash position, perhaps a little gold, and hedged. If you had an account worth $100k, then maybe you should consider $30k in TZA to hedge against fuckery.

I’ll try to blog a year in review later on today. For now, just know that the IWM is trading sideways and looking poor. I would not allocate now and would advise you to wait for late afternoon to position for tomorrow. I cleared out most of my positions in the morning and now sit mostly in cash, +90bps.