Ah_Meng
06-14

It's definitely not clear blue sky out there... In fact, it is raining smoke and bombs 💣. As I am typing away in my cold but comfy home, the other end of the 🌎 is feeling the impact of raining missiles. 🙏🏻 Yes, Iran has started its retaliation effort, as expected. Obviously, this is the beginning of the new war front, because Israel is far from finished with its own missiles launching as well.

What I did yesterday and the day before was to sell off some of my many holdings, including some long term positions. I am going to a bit more cash. I have been a relatively big precious metals buyer over the years, if not decade, so I can take some comfort there.

I had also took two new leveraged shorts positions yesterday (see pictures below). They are not ideal, especially when the 3x instruments are all daily close, meaning there's the absence of compounding effects. Furthermore, it just takes some sudden reverse in a couple of trading days to reverse any gains I might make. Then why do I still do that? They are good for short term protection. Just in case, the war does goes on, it is going to be nasty for the overall stock market. There would be some big down days ahead when more people comes to the same realisation. That is, sell off will trigger more sell off and finally avalanche if panic sets in! They are just temporary instruments to cushion those blows.

Two more things that have been at the back of my mind for a while before the Israeli attack. 

1) The erratic Donald Trump and the US state of instability. Think tariff wars with an uncomfortable truce with China and EU, possible internal conflicts that might trigger a civic war within USA. 

2) The growing list of insiders or smart money selling off their shares, signalling their perceptions on their own companies. Definitely not a bullish sign if you ask any rational people.

The market participants seem oblivious to the above concerns and kept buying and buying, supporting various dips, pushing market ever higher.

I am not that optimistic, so I have decided to protect myself a little more. All might not end well. Stay safe.

@Tiger_comments  @TigerStars  @Daily_Discussion  @CaptainTiger  @Shernice軒嬣 2000  @boonboonie  

SeptemBEAR is here: Are Your Portfolio Ready for Volatility?
In September, the VIX may fly as we may see September Effect hit again. ------- 1. Is the market in danger with September effect approaching? 2. What's your strategy to cope with risks?
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Comments

  • Kristina_
    06-16
    Kristina_
    Totally get where you’re coming from—markets have been riding high like nothing’s wrong, but geopolitics and insider selling are real red flags. Good move staying cautious. I’m watching closely too, especially how tech holds up if things escalate.[Thinking]
    • Ah_MengReplyAh_Meng: 
      Besides the obvious gold, silver and oil companies as possible hedge
    • Ah_Meng: 
      Thanks for sharing your thoughts.[Heart] I am betting on both sides at the moment. I have some call options on individual technology companies linking to flying vehicles, autonomous driving and even cybersecurity. Hopefully they are different enough to see through the potential ups and downs.
  • Shernice軒嬣 2000
    06-14
    Shernice軒嬣 2000
    $Venture Global, Inc.(VG)$ [Miser] [Miser]
    • Ah_MengReplyShernice軒嬣 2000: 
      It’s okay… this world is strange… it’s all about timing… drop just means a better entry price [Silence][Yummy][Chuckle]
    • Shernice軒嬣 2000ReplyAh_Meng: 
      It's dropped [Facepalm]
    • Ah_Meng: 
      [Eye][Comfort][Heart] Have put it in my watch list… thanks for sharing
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