The Nasdaq lost another 300 today with severe selling that had the hallmarks of liquidation. The strength in oils buoyed the market and had oils not bounced we’d be in a much much worse position right now. Early on I doubled my position in GUSH and it ran +12 from then till the close. I sold CELH and RIOT, one for gain, one for loss and continued to average down in WCLD. My LABU position is +7% from basis and is 15% weight, but I did not sell it because I didn’t feel like it.
On the whole I am 42% cash, 5.5% UVXY and the rest long. I shed 1.6% today, after sinking 3.5% and then moving back up to breakeven. But we saw significant weakness in the final hour, again rooted in margin liquidations and forced selling. Those who leveraged into this decline have been dispatched. Although the prices look cheap, they’re also subject to forced selling. You have to realize this before stepping in.
I was tempted to allocate 100% long but then I remembered WW3 could quite literally be days away. If the worst case scenario played out we will undoubtedly collapse 1,000+ and continue to spiral lower until peace is negotiated. Until we get some clarity, it’s really hard to see anyone going all in. Even if we rally hard and everything looks great, we are one cruise missile away from total dislocation of the markets.If you enjoy the content at iBankCoin, please follow us on Twitter