This has not been my finest hour. Indeed, if I had decided to sit on my roof (picking at the moss, perhaps?) for the first hour of trading, I would have served myself better, because I gotta tell ya, this action from midnight until about half an hour into the trading day freaked me out.
I covered my largest positions and rapidly decreased my exposure from over 200% to less than 100%. I am typing these words only seventy-five minutes into the trading day, so who knows how it’ll end, but let’s just say that some of my closes were at inauspicious prices.
Specifically:
- One of my portfolios consisted of nothing but SDS (double inverse SPY) which I sold completely;
- Another portfolio I dropped from 210% exposure to 78%;
- Yet another I dropped from 205% exposure to 99%;
- My one “crazy trade” of SPY $670 puts expiring today I sold at almost the worst price of the day;
- Mercifully, I didn’t dick around with my options portfolio, which remains fully committed
When I saw things breaking down again, I re-entered some of my stupidly-closed positions (at worse prices, of course) so as to beef up my exposure again.
The simple fact is that this IS a bear market, and every single ETF I look at is screaming the same: so long as the gap, marked with a dashed red line, isn’t violated, you are golden.
NONE of these were violated, so I am officially giving myself the Moron of the Month award for not toughing it out.
