Markets slipped almost 20% at their worst yesterday. Interesting that they bounced back today, 20% is usually the metric which defines a bear market. I guess we can all collectively catch our breaths, it isn't officially a bear market because we rallied 1% off the lows. Are you buying it. good, neither am i.
My long short portfolio survived with a decent gain. Because of triple short ETF's and out of the money puts that went into the money to hedge my larger short positions.
As far as today goes, I'm not so sure we have seen the bottom or capitulation; I haven't bought anything today except some puts.
I did go ETF shopping yesterday, one of my favorite things to do on market plunges is to purchase big yield at panicked prices.
As i mentioned earlier, one of the best moves you can make is to re-balance when the market crashes. Sell your losers and trade up to better stocks that have fallen in line with the general market.
My current portfolio consists of 60% in cash, and 10% remains short.
I'm not ready to go all in yet, you shouldn't either.
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