I had 15% UVIX on top of a 100% long book heading into Fed. I had been perfectly balanced up 1.6% prior to the decision. The Fed hiked and the initial move was up, which I knew was a scam. Powell’s comments were hawkish and down we went. As the session progressed I lost balance since my longs began to outpace my UVIX hedge and I lost about 120bps from the meeting.
I booked $20k in trading profits, via SQQQ, FAZ, and UVIX. Seeing the regionals get hammered, I figured my bias deserved to be bearish with 5 mins left to trade. I was 45% short, bear’d up and eager. However, muscle memory kicked in and I recalled the innumerable Fed days where markets rebounded the next day after some spin.
I closed out most of my shorts, keeping a 10% UVIX just in case.
I did lose some balance in my hedging — but still closed up 43bps on a day that most of you, without doubt, got your brains blown out clean.
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Cheat codes, making it look easy!
Nope. Had plenty of time to tug one out while you swung around trading and listening to these ship of fools called The Fed.
You are legendary and there is nobody like you. No argument there. If you had an ETF. I’d buy it.
Fully on snooze control. QE forever. Musical chairs will go on.