Market Correction Started?
Hi All, for those of you that have been following me, you knew I was shorting the market anticipating a market correction. After a strong Nvidia earnings but Nvidia price started to fall I was even more confident that matket corrections may be around the corner. Well the first day back from Labour Day weekend and on first day of September trading, we see market started to drop steadily from premarket session and the drop picked up even more steam into market open. The drop today happened before this coming Friday’s none farm payrolls report. This is showing all the weak signs and smart money is selling into to the recent rallies before this Friday. I think institutions may be anticipating a weak job report ahead. So is today really the beginning of a larger corrections ahead or is this just another one day drop with V shape rebound tomorrow? This is wait to be seen. My feelings is institions are selling now and also getting ready for the next rebound up buying at lower prices in Oct. then rallying into the US election in November. I will keep close monitor and act accordingly. Nevetheless, I had already closed off my holdings for SOXS in today early hour trading. This is 3X short on semiconductors ETF. I may have sold a bit early, however my objective is to take profits when I am satisfied rather then being greedy with additiinal risks. My view is I can double my money much more easily with 10 stocks making 10% to 15% each in a shorter time frame than holding on 1 stock waiting for it to make 100% profit.
With China already in recession and US slow down and most probably also already in recession, I continue see oil price continue to drop due to weak demand by the 2 largest world economies. I also think should be ok to continue hold shorts until end of September but take early profits if market drops too quickly.
Currently I am still holding on my SCO (2X short on oil), VXX, QID (2X short on QQQ). QID I originally had very small holdings. I just topped it up 80% today making it a much larger holding but basically brought up my entry price much higher with today’s price. Anyways, below are my profits on SOXS and the stock I am still holding with current gains for sharing.
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Retailers must include gold in their portfolio during rate cut cycle and economic slowdown. Consider NEM, GDX, GLD, GDXJ
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