Room to Breathe

Posted on Apr 5 2016 - 2:58pm by Sharpe Trade

It has been epic.

We have been bullish on stock indices since February.  February … when every two bit hack from here to Kuala Lumpur broadcast their perma-bear biases to anyone that would give them a listening ear.

Yet stocks have cruised higher … and higher.

So now what?  

Risk dumped a bit there over-night.  And I can hedge everything heavily, given the right set of circumstances.

But I am not really ready to hedge anything at the moment, or to do so too quickly.  In essence, I have a mountain of basis points, from which to make that decision.  I have ‘breathing room’ or ‘banked mental capital’, and so I am not yet shedding my unhedged bullish stance …  

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