FOOLED OUT OF HEDGES

The CPI numbers came in at 5%, steadily trending down. The initial reaction was way up and as soon as stocks opened, it plunged.

I had both UVIX and SOXS at 10% a piece in addition to other leveraged longs and I closed them out at the open, wrongly assuming the small dip would be shallow. But now I see the dip turned into a crevasse and the entire market is being consumed by it.

I’ve since taken a 5% SQQQ and 10% LABD position to stem the tide.

With oil up and rates down, I figured today would be another green day.
But we have given back over 100 NASDAQS and now menace a “sell the news” spectacle over the longs.

For now, I’ll keep the hedges and will likely increase SQQQ to 10%, keeping the shorts light since I already blew it once with them and would prefer to limit my trading errors to a minimum today.