You know them. I thought I knew them too. But here they are again.
1. "When people are Greedy, be Fearful. When people are Fearful, get Greedy" That one is from Warren Buffett, and it is the source of his success he claims, so it has to be good. I interpret that as Shorting the Call side of the VIX Fear Index, or going long an Inverse ETF that tracks it like SVXY or XIV. I thought it was also shorting UVXY Calls, but they changed that last night, and reverse split it 4 ways from 15 yesterday to 60 this am. It is now at about 75.50. Why would they do that? "Because they can!" says the Boss.
2. "No matter how bad things are, they can always get worse!" Talk about today! This morning it looked like a ray of sunshine was about to peak through. It was simply the Eye of the Hurricane! And boy did it ever hit! The S+P wobbled over 1810 after touching 1850.84 a week and a half ago, only to get hit by the backside of the storm and got crushed even further to where ES Futures are trading 1780 after hours presently...
3. "The Second Mouse gets The Poisoned Cheese!" That one belongs to The Boss... Well, and Today's Market too!
4. "Keep your powder dry." I still have some in reserve, but Today took a lot of powder! I could see the White, Red, AND Blue of their eyes still coming at us too!
5. "The Last Man standing (other than the guy turning the lights out at The Exchange) is Short!" Oh Dear! I went long at the end...
6. "Patience is a virtue." Everybody says that, but can you please hurry up and get to the point?
7. "The best way to advertise is to tell everybody to keep it a secret!" That could be why you can toss a rolled up hanky and hit 3 Starbucks in Vancouver... They must have kept new franchises a *secret.*
8. "The Only Thing we have to Fear is Fear Itself!" I know that one! That is the VVIX VIX Volatility Index! It ended today at 97.73. The Boss likes to see it at 100, but it has eclipsed even 120.2 on October 9 last year. Now I really know it.
9. "The Ultimate Risk is the System Itself." Stocks, Computers, Networks... Gee, I can't see how that would screw up! But now they want to replace Gold with Bitcoins?
10. "The trades that cause the most pain often seem to work out to be the best ones in the end." That is sort of like all exceptions the rules except 5. It is too painful being short... until that fateful time, like this past week, and particularly, this past two days. The Fiscal Cliff caused a lot of pain, like the Sequester and the Shutdown, but those worked out better after all.
Oh well, I was doing so well. I will regroup and see if I can recover. But if you have dry powder, watch that VVIX! Gold rebounded a bit to 1268.8 in futures trading at the moment, while the Bitcoin bounced around all over between $915 and 935. We will see what happens on Monday. And by the way, did you know there are different kinds of switches? Suffice to say, I am glad I can run fast! My hide is sufficiently tanned in my own *special* way, thank you!
I hope it gets better, but like The Boss says, it can always get worse... Now how are we going to deal with those new Mercedes M Class cars with the automatic Collision Avoidance at the weekly Banker's Demo Derby? Hmmm... I wonder how they handle a good old fashioned T-Bone?
;p,
Robin
xo
<Ponders strategy...>
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