Back about six weeks ago, on a Friday afternoon of August 23, the markets got crushed because of a Grumpy Trump Tweet about the trade war with China. As I tweeted at the time:
“Methinks it might be a good time to buy when the markets are down 3% because of a Tweet.”
I was much more detailed in my Trading With Cody Trade Alert at the time:
“I’ll write more about this stuff this weekend, but I wanted to get this Trade Alert out while the markets are in panicky sell-off mode. I’m covering a little bit more of some of my index shorts, like the SPY, IWM, SMH, but just about 20-30% of each of them. I’m leaving most of the the index puts in place but am trimming maybe 5-10% of the puts too.”
Cody back in real-time October 11, 2019 now. The Nasdaq was 7500 when I wrote that. Today, the Nasdaq is up 2% because…buzz is the trade war with China is getting, well, “better,” I guess. The Nasdaq is up over 5% from that day also.
So you might can guess that I think it’s a better time to trim than to buy when the markets are up 2% on good vibes and little substance of headlines about the Trade War.
I’ll write more about this stuff this weekend, but I wanted to get this Trade Alert out while the markets are in euphoric rally mode. I’m just going to trim a little Apple and am adding some more hedges by shorting and nibbling some index puts on the SPY, QQQ, IWM, SMH and IGV.
I leave you with this thought:
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