Tensions are running high on Wall Street and even in the Trading With Cody Chat Room. I’m trying to write up a Latest Positions but with the markets tanking yet again today, I’m going to sneak in another Trade Alert here.
I’m selling most of the rest of my index put hedges here.
On the one hand, sentiment has definitely some extreme bearish levels here and the gains on these puts are quite serious. On the other hand, the risks in the markets are indeed higher than they have been the last few times markets got hit and sentiment turned extremely bearish to these kind of levels it’s at today, and I might buy some lower priced index puts in days ahead if the markets do rally from here.
I’ve preached caution and cash and hedges all year and I’m still not about to start being aggressive about buying stocks today. But color me a bit more bullish than I’ve been in months.
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