iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,599 Blog Posts

PREPARE FOR A GAPPING LOWER

The semis have topped out and your dreams of participating in $NVDA following a 700% rally will end in tears. My basis on $NVDA is $12 and have no intention on selling, if only for tax considerations. However, the writing is all over the walls, written in blood, and the market is about to crescendo lower in a most heinous manner.

I want to be clear about something: I am still bullish, but feeeeeel we are in for an immediate clubbing. I also reserve the right to change my mind at any time.

Because I was long and fallible just like you, I shed 48bps for the session. I could’ve done things differently and behave more aggressively but I didn’t see the need to really micro fixate on the passing storm.

I closed hedged via $SOXS, 25% cash, with a portfolio filled with low beta stocks.

I am exactly flat for the month of June. I intend to reduce exposure into the final days of the month with modest goals to achieve gains without having to expose myself much. This is going to entail hedging a lot and not trusting trends, buying back inverse ETFs irrespective of price in order to reduce beta and tighten the ranges of my profits and losses. The absolute worst case scenario would be to chase a doomed rally and ride it down 2 or 3 percent before stopping out to cap off the month, which is why I will attempt to keep my ranges under 1% win or loss for each session.

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