Riding into Xmas Without Hedges

What revelry! What stupendous audacity! After weeks of rolling around with small positions and hedges, I have finally manned up and allocated 90% of my book long without a hedge. I am certain this will result in high anxiety, especially during tomorrow’s opening tick when PTSD kicks in and once again I fear the rapish nature of the market. But for now, like the lads sleeping in the UK on the eve of the Normandy invasion, I am both relaxed and “super brave.”

Today’s market felt like back to normal, as is the panic had definitely subsided. It wasn’t overly bullish and there weren’t ribald gains to be enjoyed.

The momentum intelligence algorithms inside Stocklabs are pointing to clear sailing the next 10 days.

If there were ever a time when the market needed to quiet down and enjoy a reprieve, it is now. Once the New Year’s harkens and junior is tossed off the trading turret again and the masters are back to allocating, we will see some real volatility. I’d argue the very worst place to hedge now is via a VIX long. I am expecting moderate gains from now through end of year. If we should get some sort of evil fucked up collapse, well then, you might as well sell it all and wait for wholesale liquidations to ensue — because given the recent carnage and disposition of people — I fear that another leg lower would equate to a full blown rout.