You must adapt to survive. While I have felt this sell off has been over done, and still do to an extent, there is enough evidence to give the "recession hawks" some clout. Last week I called a bottom in equity markets and I was kind of right. We we're very, very oversold and do for a bounce even if it was a fool's rally. But the fact is we're still in a downtrend and there's no reason we shouldn't go right back and test those lows until we see some sort of evidence the world isn't going in to recession. My call of a bottom may stand correct as I don't see us taking out the lows unless SocGen goes the way of Lehman or our GDP actually shows contraction next month. I'm still mostly in cash except for a little Apple (AAPL) and a few names I've owned for a while. I intend to buy some QQQ puts at the open and get long some GLD as I see this sell off accelerating as the day goes on. I'm going to stay defensive until things get better which doesn't look like it's gonna happen before the end of August. Of course things can change quickly so I'll be paying close attention.
Good Trading!
This is not a recommendation to buy or sell any securities. DAK was long AAPL at the time of this publication but positions can change at anytime.
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