Lots of pennies and smalls running to kick off the holiday season run. The market is always at its best this time of year, opting for higher prices more often than not — aspirational and the very best human disposition we have to offer.
Nevertheless, in my day trading account, I am back to cash aside from my BITO calls, because I’m up 116bps and that’s a fine return for a single day and I’ve learned harsh lessons since February about greed and the toll it can take when pursued at the wrong time.
My quant was liquidated as well in order to make way for the November portfolio, which should be selected by noon.
If you’re asking me if I like the market I would answer that I do. But if you’re asking me if I trusted the market, I most certainly do not.
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Trust everyone; but always cut the cards.
TNA is a thing of beauty. BABA Nov 150 puts quite buyable if you want to hedge your BABA calls.
I would say that the higher we go the more I’ll hedge this market.
The Fed is going to follow the path of other central banks, speading up the taper and announcing earlier than anticipated rate hikes. This will cause the front of the yield cirve to balloon and eventually pull up the long bond. When that happens and the market cannot ignore it any longer, then the rally ends. That day is coming soon.
Speeding*
check email Caine
I’ll be long, and hedged, until said calamity. Trade what you see…I’m up 2.31% today.
I agree with the Fed. Transitory. Even with the pay raises, the middle and bottom are still underfunded and tech continues to make jobs obsolete.
Taper, yes. Dramatic rise in rates, no.
There will likely be drama with overreactions in the markets but a year from now rates will be little changed.