Turns Out I Was Topping After All

Last week I asked the question Am I Topping?

Earlier this week I had a bit of over-confidence and hubris that maybe I wasn’t topping as the portfolio hit a new high. That’ll teach me.

Today, insofar as you may or may not care, I can tell you that yes indeed, I was topping. This chart was as of yesterday’s close and today is another down day. So the key now is to avoid letting this thing decline to the degree stocks (and the miners) are.

That means risk management. I took my profits on volatility (VIXY, too soon of course) and hold another bearish buffer in a Euro short. That is because stocks made their hysterical rally due to the weakening of the USD so this defacto leveraged USD long is a natural hedge.

The best risk management, however, has been cash, the raising of which I’ve done a lot of. My goal is to not let the chart above do what other markets are doing. Manage risk first, speculate second.

The above by the way is no comment on what I think this correction is. It would be almost too easy to call it the 2020 crash, part 2. So having cash not only protects during the correction but it also provides the ammo needed for future buying opportunities in great companies getting hammered, if applicable.

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