I got chewed up most of the session with poorly timed DRIP and UVIX positions. I extricated myself from DRIP at a minor loss and doubled down in UVIX at the lows and ended up profitable in the position as the market swooned lower into the close. I ended down 0.5%. My approach to this collapse is to methodically add to TNA at 2.5% weighting increments and add to already down DK and BTU boon-doggles. Although I am bearish and in my heart want to preside over a truly horrifying crash, I do not think the ultimate collapse is here yet.
No need for a long tedious blog. Most people are bearish now, so we’ll probably bounce soon. I am looking for a gap lower in the morning followed by a rally.
If you enjoy the content at iBankCoin, please follow us on Twitter
Everywhere I look, I see the same thing. People saying “the market is going to collapse” and then behaving otherwise (i.e., going long). We will get oversold bounces for sure but we are nowhere near a bottom, not even close.
I don’t have the guts to play with fire and try to time the inevitable and fearsome bounces that always happen in bear markets. It’s tantamount to what I did as a kid for kicks when I held lit firecrackers in my hand, sure that I could toss them right before they exploded.
Bob, don’t fight the Fed. This morning is an oversold bounce. The markets will go lower because the Fed will continue to raise rates.
TINA (there is no alternative) is now dead. You can get just under 3% on 8 week T-bills, which allows you to roll your money after each new Fed rate increase. We’re likely to get another 75BPS increase in Nov and 50BPS in Dec. That’s how I’ve decided to play risk off at the moment.
I can wait until there’s actual blood in the streets. It’s coming, just not yet.
I’m in full agreement (read my post again). I’m up ~ 17% just by being long dollar.
Why should the market “collapse”? The economy is booming,
there are job openings galore, companies are making money
people are LOADED with cash, and the overpriced FANGS and
shithole software stocks have already dropped over 50%.