I’m nowhere near ready to make a victory lap, but I’ll certainly say that an /ES up 20 points sits with me better than an /ES up 50 points. Thus far, all the major equity futures have some form of “overshoot” which has been beaten down. We’re still green across the board, but more modestly.
I did get stopped out of some positions, including some big ones, but stubborn jackass that I am, I re-entered many of them, some at excellent prices. Most of my existing shorts survived, and Credo (CRDO) is a nice example of the kind of fake-out that has been taking place and which, happily, did not trigger my stop.
The daily chart of CRDO illustrates how this morning’s mayhem actually helped the bearish cause on this equity, not hurt it.
For what it’s worth, my positioning across five portfolios is as follows:
- One: all cash (very conservative)
- Two: all cash (very conservative)
- Three: 165% committed across 18 equity shorts
- Four: 178% committed across 12 equity shorts
- Five: 74% committed across 9 options (long puts)
