LOSSES MOUNT

We shouldn’t panic yet but these losses to start off 2024 isn’t helping confidence. The crux of the weakness stems from the spike in rates, now sporting a 10YR yield of 4%. On top of that, cryptos are being whipped at the gibbet based off yet another Bitcoin ETF denial rumor — and high beta risk on stocks are off by 3%. I know this because I have a High Beta index inside Stocklabs.

I was positioned in risk averse stocks and TZA-UVIX-LABD and therefore stand before you +59bps. I am a professional of the highest order and now tell you “go to cash” — at least until the fog clears.

It’s true that if we are truly in a bull market, this represents a great buying opportunity. But what if, by chance, the crimson tapes deepens in its ferocity — routing the catamite class investor back into their hovels? This is something to consider and I think about these things often.

At any rate, I see no reason to rush anything — 100% cash in my trading until the voices inside of my head encourage me to do something.