Trade Alert: Shorting a small cap ETF and a tech stock

So, let’s make a couple small trades.

The six month chart on every major index is getting rather extended and while I remain quite bullish on our stocks specifically and somewhat bullish about the stock markets for the next year and five years and ten years and most importantly, for the next 10,000 days. I want to put on some hedges again, as I do expect we’ll have some 5-10% pullbacks this year and perhaps sooner rather than later. I’m adding a short IWM position to the portfolio today as I think small cap stocks look particularly vulnerable to a pullback.  I’ll leave plenty of room to add to this trade, but for now I’m going to short some $IWM and buy some $IWM puts dated out into August with strike prices around $137 or so.

I’m also going to short a 1/5th-sized tranche of HUBS here as my last trade in this name. If it rallies close to $65 from here, I will probably go ahead and cut losses by covering it, but in part because I want to add a little more hedge/short exposure to my portfolio, I’m seeing if we can catch it exhausting itself to the upside here.