The inevitable fate of the market lower has been delayed. Out of the gates, stocks jumped, except for oil.
I closed out my hedges and also my growth stocks and kept risk averse names because I’m a fan.
You can trade all you want and even perhaps make some money both long and short. The fact of the matter is, this tape is terrible and the direction is uncertain, which is why I’m opting to not trade big.
In the past after being portfolio jumps, I’ve fallen victim to hubris and underwent severe drawdowns as a result. In a sense I’m applying a Constanza trade here by getting small and hedging at all times, with an emphasis on preservation of capital until I see a fat pitch.
I’m down 12bps as of this post, 56% cash.If you enjoy the content at iBankCoin, please follow us on Twitter