That’s right, grow a set and short the market and at the same time load up on the great companies that are in the blue light special aisle. Full disclosure I bought 50 QQQQ March 44 puts yesterday at the close and then 50 more at the open. I decided to add more due to the incredible volume today on the opening . When I left this morning, I was doing well on the first 50 and actually losing on the second 50. I like this trade and I’ll tell you why. Everyone knows the market is due for a correction and we’ve all been waiting with our figures on the sell button for it too happen. A crash? Hell no, a CORRECTION. The market has had an incredible run since August and needs to come down 5-6%. Did I think it would be in one day? Of course not. Do I think it will continue? Yup but it drip down and you’ll have an opportunity to buy your favorite stocks at a cheaper price. We’ve gotten spoiled by everything going up and it’s time for the bears to get some of their money back. They have been crushed for 6 months, so give them a piece of meat and let them eat a little. Remember in the long term everything is going to be fine. It is OK to short stocks and buy puts. It feels wonderful to ride this thing up and then on the downturn to make even more money. Life is grand.
Most people only know how to go long or short and don’t have the emotional balance necessary to work the markets both way. They are either a pessimist or an optimist, not both. To me these are merely numbers. Good companies will always rise over the long term but just as in life there are good days and bad days. IMO there are more bad days ahead for the market but it does not make it a bad market. During these times I simply sell the market and use the money to buy stocks cheap. It is a great way to play “downtrending” market. It always has but I am not convinced after one day it is a downtrending market. PS. I am still holding June ICE. Despite them market, ICE is a dream stock and I will continue to add.