Bienvenidos mis ositos, tu siempre eres mis queridos! (Welcome back little bears you are always my dears!)
Sometimes the bulls got to eat, sometimes the bears got to eat.
-Old Timey Trader
It’s years like this that make me miss my old mentors. Some have passed on to that big trading floor in the sky. Others have long since retired to tropical paradises.
I’m left alone to ponder where the markets will wind up.
But I am thankful to my dear subscribers who have stuck with through bull markets and bear markets.
My recent posts tended to be dark but that doesn’t mean the world will suddenly implode.
My posts are REFLECTIONS not predictions.
If you’re a trader, you can only trade the price movements right in front of you.
If you’re an investor, you do your best to map out the cashflows of your investments.
Sometimes you’re early and need to wait around for other people to see what you see to help push prices to where you expect them to be.
Other times you stick around too long to watch a wonderful turn into a dumpster fire.
There seems to be big fight between the bull and bears.
I’m not talking about the average chumps on social media. I’m talking about the big boys and girls that have billions to throw around in the market.
Who will win out in the near future?
There are some big money managers that theorize the winner may not be either bull or bear!
What if stocks stay flat (after inflation) for the next 16 years as described in this article:
https://awealthofcommonsense.com/2014/06/1966-1982-stock-market-really-bad/
Most of have experienced crab (sideways) markets before.
King Crab market would be like a HIGHLY volatile sideways market with both upswings and downswings. This could mean we will have opportunities to take profits faster
This also means we could monetize our hedges faster too!
I’m a Panda BEAR.
I don’t like to go against the family. That means I generally have a bearish stance.
However this Panda likes to put on his bull costume once in a while.
Risk markets have shown some bullish signs of life.
The bad news has gotten less bad.
Supposedly Genesis Trading has reached an agreement with their creditors during the beginning of their bankruptcy proceedings.
If we’re lucky any liquidations from Genesis Trading and the Digital Currency Group will be orderly.
This doesn’t mean it will be a smooth ride. It means you will need to assess both bull and bear scenarios. Sometimes you will have conflicting positions!
When you have both long and short positions make sure you keep notes on what you expect from each position.
Periodically review your portfolio and rebalance if necessary.
For example if you have a winning long position you can take some of the profits and buy some long puts for protection.
If your long puts become profitable that means your long position went down. Take some profits on the long puts and dollar cost average into your long position.
Rinse and repeat until you find other opportunities!
For those that keep up with the markets and can pivot quickly, they could benefit from BOTH Bull AND Bear moves!
Time for some cautious optimism!
Obviously none of this is formal financial or tax advice. You need to find qualified professionals in your jurisdiction.
Be sharp, stay hungry let’s get that money!
