This is what is officially known as a “Bad Morning,” but at least it’s not a disastrous one. Here’s a quick portfolio update from me:
- Yesterday, as I mentioned, I had two “aggressive” positions (relatively speaking, since they expire in October instead of freakin’ next year) but got rid of one of them (the SPY puts) at a profit since I don’t trust this market (and rightly so);
- When we opened this morning, I immediately closed my other aggressive position, my IWM puts, at a modest loss;
- I also dumped a handful of positions to trim my risk further;
- I presently have 21 bearish positions, none of which expire sooner than 163 days from right now.
- I have transferred a huge wad of cash out of the account back to the safe and boring checking account, just to keep it out of harm’s way;
- Even with that diminishment, I have 21% cash on hand.
See, I don’t do the balls-out, /wsb-style, crazy-risk form of trading. Of course, if the market was plunging now, my profits would be pleasant, but not anything to shout from the rooftops. It’s a two-way street.
I’m here to tell you, as your resident chartist – – NOTHING AT ALL HAS CHANGED. Zilch .Zero. Absolutely nothing. There have been no gaps violated. No trendlines broken. No Fibonaccis wrecked.
NOTHING.
Capital preservation is the name of the game, though, folks. If you shove all your chips forward on something that MUST go your way, you might only get to play once.
And, if I may offer another flicker of hope to my ursine brethren, I would modestly ask you keep your eye on crude oil. Energy is going to lead the way. I’ve said it before, and how about that, I just said it again!
