When analyzing risk, it’s important to think about the worst case scenario. A 20% decline in a portfolio is doable, especially when buying at the top of a range and/or not being broadly diversified.
As I am positioned now, I am prepared to endure a 20% dip.
Let me paint a vivid picture for you, by way of rudimentary math.
If Joey Bag O’ Losses has $1mill in the market, with $400,000 of the millsky in a money market, how much will Joey lose on a 20% decline?
Answer: $120,000
In a nut shell, I am prepared to see my positions down 20% from current levels, due to my 40% cash position. Because of it, my losses are minimized, as well as gains. However, I am looking for a minor correction in the market. Therefore, I am exercising my large brain, represented by my 155 IQ, in order to make a market call.
If the market fucks me to the tune of 20%, my year to date gains will be shaved down to a paltry 63% (give or take a point).
Now ask yourself: Are you prepared to endure a 20% drop from current levels? If so, do you have a buyback strategy, by way of a well stocked watch list? Now is not the time to gawk at the screen, praying for someone to help you. You must act now, before your dick is stuck in the proverbial “cock-cutting escalator.”
If not, soon enough, you’re going to be shining my shoes.
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I’m 100% cash, eating roast beef and waiting…..
on this pullback, however one of my winter plays does include PCX, I will wait for further pullback before legging in.
100% cash is for magicians and/or psychic friends and/or pussies!
pikers can be 100% cash at times you know…. for small periods of time…
Not only would that bore the fuck out of me, I also collect theta on existing short options positions and would miss out on that. Technically I’m always 100% cash minus my obligations of course.
I’m perfectly happy to roll and roll some more
That said some sort of short squeeze fuckery here would be most enjoyable here, later in the week even better. TIM is running around claiming victory and calling bulls evil and vanquished. Already a number of other ‘This is IT’ bears are diving in the pool as I write this.
speaking of 100% cash….where is AlphaDawg? is he still in Spain or France or somewhere skipping along the cobblestone walkways, handing out lit sparklers to young kids?
Thanks for the heads-up, chief.
Fly, what’s your take on the move in treasuries? There is a huge bull flattener on with long end of curve taking off…Bond market challenging equity market to a game of chicken
Right around 50% cash now. Today isn’t the time to step back in. If the market is bound and determined to go down no sense getting in the way. I’ll just be prepared to get aggressive at first clear sign of a change in direction.
20%, ….20%? Is that all ya got? For me it’s back to range trading – once it makes a vogue comeback.
schizoid
60% cash and enjoying myself in conspicuous, vainglorious and sometimes pretentious ways…
Rome, AD41. High noon. Voluptuous, full-breasted women, naked under their flimsy see-through gowns, cluster in an opulent anteroom with groups of virile young men.
Drums beat relentlessly, yet – despite the rampant debauchery of the scene – there is sudden, respectful silence when the bride and groom make their entrance.
She is the epitome of a blushing bride. Radiant with joy, her brown eyes glisten with emotion and her lustrous raven hair is garlanded with white blossoms.
Beside her, her handsome young husband, dressed in white robes to symbolise his purity, gazes at her lovingly. Hand in hand, they make their way to the bridal chamber.
But outside, the crowd parts. The Emperor Caligula strides into the room, a gold chain in his hand, the end of which is secured around the neck of his statuesque blonde empress.
He makes an announcement to the room. ‘And now for Caesar’s wedding present,’ he declares.
He strolls into the chamber, strips the terrified bride, throws her onto a table, holds her down and – commanding her to look him in the eye, and her husband to watch – he proceeds brutally to deflower her.
Then he turns his attentions to her innocent husband.
What follows is shocking in the extreme, as Caligula forces the bride to watch him have sex with her husband.
Read more: http://www.dailymail.co.uk/femail/article-1050722/Was-Caligula-greatest-Hollywood-history.html#ixzz0Si5Tk6Gv
Hilarious stuff from you bearshitting losers. Try nailing this market when it is not falling off a cliff.
Should we buy more DRYS?
You should learn to think for yourself.
How abjectably Moronic
Black Rock 3 trillion under mgmt… To big to FAIL!!!!!! holy shit… Thats 25% of the US GDP!
Prepping for a ridiculous rally tomorrow, way too many defending this market eagerly buying up the shorts. Closed out completely of all short positions, long commodities producers.
I turned the tradebots on high – we will go flat into the close here. Fly, your IQ is 156, not 155.
i am anticipating the next Fly move.
buy SQM
buy FTK
buy DRYS
waiting….. waiting….. waiting…..
Here is the latest guys !!!! ( I m sure The Fly will cry over this one )
GE and COMCAST in talks to sell 51 % of CNBC Universal !!
How does that grab your balls !!
Bye now maybe ( our hero) Cramer has already packed up his suitcase !!
Have e beer guys !!!
so the dipshits are all short now
and the Wizened Elders are all 50% cash…
Yeah, let Tim Knight jerk off tonight on his bloggers.
Lot of firepower is going to run right back in as soon as extreme oversold levels hit. (i.e. tomorrow)
Strong dollar is needed for next week’s debt auction. That’s all. Strong dollar is just a nonsensical phrase like sober Irishman. Enjoy the two day selloff.