I feel like I've seen some forums on this but not many. As the market is going down, what's the buy?
-
Commit to buying tech that is least more reasonable than what it was
-
Invest in commodities
-
Maybe some merger plays with companies like twitter?
Just spitballing some ideas, but where are you all putting your money?
I feel like the rate hikes are going to tank this market far worse than 2018. I'm trying to liquidate my positions the next fake rally we get. This year is going to be a massive bear market imo. Think October is going to be an absolute market tank, especially with midterms going on. Gonna have a good cash position then to deploy into some TQQQ and SOXL. I expect the Fed to reverse course by the end of year and go back to easing, even though their rate hikes will have done nothing to curb inflation.
Interesting, so you think the rate hikes will just cause a recession but not stop inflation. You thinking about shorting anything or just going long only?
I mean I guess you could buy SQQQ (has a 100% return YTD) or some form of a leveraged inverse market ETF, but I don't like touching those things to be honest because the market tends to trend upwards. Would rather DCA on long positions. I would never short anything because you can never guarantee timing, and losses could suffer because of that. Right now I'm long on a couple positions but waiting for a fake rally like the one we had from March 14th to March 28th to get out. Trying to build a nice dry powder stack to deploy on the bargains I expect to see later this year. Market is extremely overvalued
I trade options contracts so I'm mostly market neutral (personal trading, not for my BB). I just want to see the volatility and profit from that. Katie Wood has been good for business because she's so polarizing and creates nice premiums on both sides. I have no idea who she is or what she says/does, she's just good for business. Otherwise, I'm just out there selling insurance, picking up whatever my algorithm says I should buy.
Interesting, all my personal trading I've done off of fundamentals (value mostly). How did you create the algorithm and do you plan to tweak it if the market slides more?
No, I don't make any tweaks to it. I just have different options and deltas that I'm looking for - I play on the thin tails. I can adjust my overall appetite risk on any given day via an SMS app (I wrote it myself) but that's just to put more money in play. I basically just aim to trust implied volatility and let it take care of me over the long run.
-Selling Puts on UPRO to capture the vol
-Did a bit of energy buying with PSX and XLE but starting to closing out
-Starting to slow down on the DCAing into SPY and QQQ and stack cash as I also think the market will fall harder but want to avoid market timing. I’m waiting on two components to hit until I start redeploying; valuations to normalize which they are (SPY PE getting back in that mid teen range vs 20s) and CPI to begin to fall. Big banks seem think CPI peaked but I want to see it fall as the fed JUST started raising rates and has a long way to go to get to neutral which will continue to rock markets. Once I see this I’ll redeploy back into spy, qqq, and some single stocks that are discounted. Given this thesis, I might try to mess around with SQQQ as a tactical trade.
Anyone getting defensive and starting to recession proof their portfolio? If so, how?
Literally the same exact shit as me haha. Bought a bunch of oil shit last August. Exited 90% of those positions. Been building as much dry powder as possible because I expect a stock market tank, especially in October. I'm personally in TQQQ and SOXL but tryna sell out this fake rally that I believe started last week and will end early next week. Next week gonna throw some money at QID (basically SQQQ but 2x instead of 3x) and SQQQ with most at the former which suffers less volatility decay. I think the fake rally will start reversing by next week. Gonna keep a large cash position though
where are you keeping your dry powder in the meantime? Also DCA'ing into TQQQ, sticking to a consistent amount though since I'm more passive.
Illum voluptas perspiciatis aliquam voluptas est doloribus rem quia. Nemo aut eum iure quia.
Neque sapiente aperiam magnam sit. Error omnis quos ipsum quia nam. Totam magni quo eaque cum nobis aut fuga repellendus. Optio corporis iste quisquam. Est error sed distinctio quia accusantium.
Sed dolores rerum reiciendis velit. Ad consequuntur autem sint quis ea autem. Officia ipsam nemo repellendus qui eveniet. Perspiciatis aliquam fugit aliquid explicabo quae id dolor.
Minus non voluptatem qui et quia. Fugit eos est maxime architecto. Unde sunt porro id molestiae exercitationem totam ex. Numquam in at tempore non aut illo saepe molestias.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...