Listen to me. This isn’t for your benefit — but only for my musing.
I am built to trade in the fires. I long for it. I will sacrifice for it and will not waiver as it crescendos lower. About mid-morning I lamented over the fact I had been distracted and was down 1.6%, with a 100% long only book. What I did next was nothing less than spectacular.
I identified the weakness in the banks and saw the undervalued nature of the VIX and legged the fuck in. I kept my 100% long book and turned that fucker all the way around — closing +24bps for the session. I was up as much as +85bps.
I had $27k in day trade profits. I did close out all shorts around 3:30 in order to book it. I then re-added them into the close — ahead of the jobs report.
I closed 35% weighted in SQQQ and 10% UVIX.
What do I think will happen next? I have my feelings but I’ve always had feelings and they’ve never done anything for me. What I am good at is reacting to things in real time. I averted what was likely to be a 3.5% drawdown in favor of a small gain. I did this, not by panicking or through greed — but merely chasing the rabbit into the hole and applying hedges into the weakest areas of the market during a rout. It wasn’t very hard and I am sure you could’ve done it too.
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It was a watch the financials [fail] day