Didn’t load up puts. Bought some SPXUs and SQQQs - Btw talking about trading portfolio. NC for buy n hold portfolio - corrections are no big deal for a buy n hold investor. Buy n hold investors only fear permanent loss of capital.
Take note, after the completion of wave 2 (correction), the ensuing wave 3 is a powerful uptrend wave. So even if you didn’t sell now and can hold without being forced to sell, would still be better than someone who sell when can’t bear decline and then hesitate to buy when market is in a powerful up trend.
OptionsPlay seems to be saying something similar in their daily summary
"As the market flashes louder warning signals to the health of this market rally, we are taking this opportunity to reduce our exposure. With the VIX and VXN moving higher despite new market highs, and new negative divergences across the board with market breadth indicators, we await a catalyst to shift the momentum to the downside. "
They (big millionaires/billionaires) won’t sell everything, but as a portfolio management, they will take out certain percentage with tax efficient way, and keep it sidelines to buy at dip. Those people may be spending some 100k-250k on software+consultancy to get all the information.
That was the message i got in my market outlook email from Optionsplay. I have a yearly subscription and so they do send me daily suggestions and a more detailed weekly spreadsheet of all recommended trades.
could very well be right. i’m so bear but like many, i’ve been riding the euphoria bandwagon via aggressive option calls, put selling, futures, and leveraged ETFs…mostly short term swings. i don’t doubt the short term vix is an indicator but the way market has been reacting to dips, i’m pretty sure it’s prudent to wait for initial drop, let the dip buyers come in for a short rally, then short the market. i also don’t see a big catalyst yet and big enough fomo to take a chance on aggressive put yet like in feb. having said that, i do have a fairly large short position in AAPL…from around 510 area. i’ll start writing some credit call spread though