Today made me much more comfortable with the market and my overall strategies. It is an uncomfortable feeling running a long/short strategy and not being able to have a reasonable portion allocated short. Noticed the wobble in the big tech names on Friday that spilled into this
week so I was able to go short the stock & via long-dated puts yesterday. Stayed long but reduced & went short via long-dated puts . Today I added and via puts & was already short pre-earnings . I went short last week & have stayed short
for around the last month. Also been short via long-dated puts. Tomorrow will be interesting. Both the S&P & Nasdaq hit the 20 day & stopped. I expect a bounce is possible & then a trend downward. Way to much liquidity & leverage brought us to this point let's see if
it unwinds here. Raised cash to 10% and have about 8% of the equity longs hedged by mostly puts that stretch past the election. ( the only actual stock short I have due to implied Vol. ) You had to know this was about to unravel when clients started calling asking for Elon
Musk stock. YTD based on allocations, client risk, we are at about 14 to 21% return. This is based on a 35 to 60% equity allocation, 6-10% commodities, 2 to 8% options (mostly risk hedges) and remaining some type of fixed income instrument or cash. Allocations will vary based on
client risk profile, market conditions, etc. I think this is where it gets interesting since the fed has signaled they are going to pull back. if we start to crater will they continue to hyper destruct the dollar through their MMT garbage & secret asset grabs??? #fintwit
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