Well, it’s really, really obvious now that the final vomiting up of stock sales happened very close to yesterday’s final bell. The ES bottomed at about 4:30 EST and it did nothing but climb between then and now. I don’t mind that I still have the vast majority of my short positions, but if I had it to do over again, I would have closed out my larger ETF shorts at the close. That kind of rush for the exit is probably going to be reversed, and it was.
I’ve backed off quite a bit, having taken my portfolio from a 95% commitment level to 66%. I got blown out of my only large short – FXE – at a loss, and many of my individual stock holdings were up 2%, 3%, and even more on the day, meaning, of course, a chunk of my profits from yesterday were eaten alive. (more…)