Covering KBA @ $39.00
Realized gain of $1.49 (3.68%)
Covering EEM @ $44.63
Realized gain of $2.45 (5.20%)
Did you know that most historical crashes happen on a Monday following a selloff Friday? We'll see if that happens - but in the meantime, I'll cover a few shorts on this selloff Friday for a profit. I don't need to be a hero - and think there could be a better chance to short something else soon.
I use my short book to reduce risk on the long book - not necessarily to ride it to the bottom. My "call" is that the stock market is extremely overvalued - especially the mega caps. I have a pair trade on to take advantage of that view.
So I'll be on the hunt for overbought mega cap and extreme valuation names to short against my boring, "real asset" heavy long book. Emerging markets and China is what I short as the cherry on my sundae. Taking the cherry off is how you start to eat a sundae, right?
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