I thought it was funny until it wasn’t anymore. I was barely down all session and then we STEAMED lower into the close. I closed down 1.7%, a formidable loss — but not my concern at least intraday. I am worried about tomorrow, which is why I sold out of my 2x TQQQ position and replaced it with a 2x UVIX hedge. I am in a 17% cash position and certainly exposed on the long side. In the event we violently flush in the morning, I will close out the UVIX and go long. If we gap the open, I will close out the UVIX and probably most of my longs.
I permitted myself to be comfortable today and didn’t take the selling seriously. There was immense damage done to the tape, in a number of stocks.
Irrespective of what the market does tomorrow, the next phase of this bursting of the bubble will be job losses, millions of them. By Fall we will be discussing how best to jumpstart an economy barreling into depression.
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