The news of the Biden regime restricting sales of chips to China hit me directly in the nuts, as I happened to be long SOXL into the open. I ended up booking the loss to start of my day over a cup of coffee. I also took losses in other stocks, bought a few others, did a general reshuffling and added a hedge. In short, I am off 77bps at the open and it’s all Biden’s fault.
A few things to consider this morning:
Iran is threatening Israel
Ukraine hit a Russian airbase with American long range ATACMs
Hungary’s Orban met with Putin in China
Putin is meeting with Xi
Biden is heading to Israel
War looms
The NASDAQ is off by 175, but small caps are up because the losses are concentrated in large cap exporters, whereas the small caps are mostly domestic. Nonetheless, expect the selling to accentuate and exaggerate into the afternoon session.
My book, for the record, is mostly long with a 16% $FNGD hedge, allocated in defense, oils and several higher beta stocks just in case we rally.
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