It wasn’t at all a bad day. My combination of a long hedge and a lot of cash served me well. Several hours into the trading day, I tweeted this thought:
As I wrote earlier, I think the notion of $BTC going back to $28k (let alone higher than that) is off the table. I’m thinking, tops, about 23k. Today, it’s quite clear that the fire in the belly of the crypto world vanished soon enough,.
In turns, although equities had a very strong bullish day, it’s quite evident they sputtered and wheezed their way into the close. Here is the /RTY to make this point:
I started the day with:
- 14 bearish positions, representing 40% of my portfolio
- 1 bullish position, representing 10%
- Cash at 50%
I ended the day with:
- 21 bearish positions, representing 65% of my portfolio
- 0 bullish positions
- Cash at 35%
I would like to point out that I actually took a LOT of cash out of my brokerage account for absolutely no logical reason, so while the proportions above are correct, it exaggerates the degree of nominal risk I’m taking. I simply decided not to have a mountain of cash there for now.
