I suspected the day might not be too terrible when the market opened, everything was raging WAY higher, and my entirely short portfolio didn’t budge. I guess it had been battered enough. It was really quite curious, but now that we’re a couple of hours into the trading day, we’ve gone from all green to all red. I’m not saying it’ll stick, but the /RTY is looking pretty ugly.
Looking at about the past year of data, we can see the /RTY has been fairly well range-bound, and we’re rather lofty in that range. In other words, there’s plenty of potential downside.
For myself, I have a mere 12 positions, but every one of them has been lovingly chosen and every one of them has 217 freakin’ days until expiration, so they’ve got plenty of time to rot. A good example is Prudential.
Just to fully open my tattered kimono, here are the twelve positions. As you can see, HALF of them are concentrated into a single sector: the financials.
