I couldn’t care less about today’s move. We can knife lower 300 and I will shrug it off like nothing happened. I am positioned, right or wrong, for a move lower. I am emotionally invested in seeing this market trade down. I know that is practically illegal when managing money on a professional level. But sometimes you have to go with your gut, not your eyes. This is one of those occasions for me. That doesn’t mean you should follow me or believe what I am saying. I’m just throwing it out there.
I’m not a big believer in gold; but will never bet against it in a big way. My sole short is AEM, based upon the idea that what goes up must come down, if only for a short while. I am long a big amount of VXX. It’s not a hedge any longer, really. Considering my longs now represent less than 25% of assets, my bias is definitely short. One important note about my VXX position: I do not need to see my cost basis of $23ish reached. It’s a losing position and it’s big. Because of its size, I am unable to add to it. Basically, I will likely sell the entirely of the position on a meaningful move up.
With regards to my TZA position: my basis is low $31’s. On any decent pullback, I will book profits and move on.
In short, I am not looking for some sort of fucked up 2008 tape, just a sharp correction, spearheaded by the easy come, easy go crowd. You know, I’m looking for a little elevator action, especially in tech. After that happens, I’ll be back to buying dips again.
[youtube:http://www.youtube.com/watch?v=L-N9-vM-AaI 616 500] Comments »