This week’s price action made me question previous convictions and dramatically altered my capital positioning.
Last week’s employment report was a positive for the US economy, but also a signal that periodic rate hikes will be the new normal going forward. The market absorbed the news near all-time highs and has been accelerating down ever since. Looking at the indices from a technical perspective, earlier in the week, most certainly by Wednesday, one could justify from a risk/reward perspective, taking most or all their long equity exposure off the table.
Now I am positioned like this;
HYG Short
HACK Short
W Short
TASR Short
BID Short
YHOO Short
UUP Long
AAPL Long
AMBA Long
Obviously my initial call to buy TASR was absurdly wrong. To be honest I am not sure what I am missing from the demand-side of body-cameras, but I could see how the valuation is arguably high. Also, their main customer is government. Selling to the government sucks, they’re bureaucratic and slow with decisions. Depending on who wins the election, their budgets may shrink. I honestly don’t know whats going on with TASR, but I felt compelled to reverse my position around $18.5. Hopefully I make a little $ back after booking my biggest loss of the year.
More importantly, what happened in Paris is horrible. I would short ISIS right now, in the last month they given enough reason for Russia and the EU to step up their offense. I hope we can create a world alliance to stomp these guys out.
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