I’m continuing to sit out the market.

music selection:  “Shattered Dreams” — Johnny Hates Jazz

weigh-in:  215.0 +2.0

Volatility and fear continue to rule the markets.  The circuit breakers tripped at open again despite (or perhaps because of) the Fed’s emergency action to cut rates to zero.  I’m not seeing anything that has an attractive chart on the long side. The short side could see a rapid reversion to mean on good news or even “less bad” news.  Therefore, I’m sitting out another week.

I have been preaching for years that if you want to trade for a living you need to have enough passive income to sit on your hands for an extended period of time.  If you “reach” you get burned.  Right now, I feel strongly that the best trade is NO TRADE.

I continue to have over 90% of my baseline budget covered with passive distributions, dividends, and interest.  I also have 14,000 dollars in long dated puts in troubled companies with heavy debt burdens as hedges.  Those are really coming in handy right now.  This is a matter of personal preference but you might also want to consider owning some physical gold and/or silver.    I hold only a small amount of precious  metals and do not plan to add to my holdings.

Devour your prey raptors!

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Third week no trades

Never miss another opportunity to devour prey!

6 thoughts on “Third week no trades

  • March 18, 2020 at 1:30 am
    Permalink

    How does your position in MRRL is going?

    Reply
  • March 19, 2020 at 1:22 am
    Permalink

    Hey Raptor,

    I’m curious about your thoughts on NEA. I noticed it dipped into the 10s earlier today. I know there will be a lot of pressure on local governments, but the bonds seem to be trading unusually low.

    MDP

    Reply
  • March 19, 2020 at 2:43 am
    Permalink

    Still holding or adding to your JCP bond? Sounds like from their conference call that this bond is minor and can be paid out of current assets.

    Reply

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