As discussed on the weekend update, for now I am considering this decline more of an “event”, than a tidal shift in the bigger picture. Importantly I am not putting any money to that view, so if I change my mind, it’s no big deal. I exited all long positions the day before the big decline on Friday last week. I exited my short position in Uber on Tuesday. I have been scrambling to keep modest gains, and have been successful thus far. Here’s what comes next.

I did go long gdx call spread on Monday, and exited Tuesday at a loss when recent lows broke. In the bigger picture I am long gdx stock, and believe its great value to own the stock down here. The short term options are another story. I always cut the short term trades when they don’t do what I expect. 

I think we might get one more leg lower before higher again in SPY. If that next rally fails, at that point I will be more open to embracing SPY shorts.

In any case, will be looking to judge each stock long or short on its own set up merits going forward. I think it will be possible to make money either side, and will be more of a stock pickers market.  

Thanks,

Joe

PS-I have mentioned a new program that I have been working on for the past few years recently. I have been watching it adapt to this market and this thing has been absolutely on fire. If you want to see the trades it is kicking out, click here.