esplanade
09
Feb

Stepping Aside, Like A Gentleman, Back Into Cash

I booked even more losses and put the entirety of my account into cash, where it will sit for awhile. Doom and gloom is rampant in every direction. Cryptos are dead, tech is cratering, oil is blowing up, and even your trusty ETFs are dropping from $100 to $5 overnight, courtesy of Credit Suisse and Proshares.

The crypto market may not roll over and drop to zero, per se, but all the energy has certainly left and won’t be coming back anytime soon. It is nearly impossible to open a new account nowadays, which means the people trading  cryptos are the ones already in the game – and there is zero optimism among those folks at the moment. The spread between Asian markets is now within ~1% down from 20%+ 2 weeks ago, further indication that demand has subdued. As crazy as it sounds, these spreads are the tell – the proverbial canary in the coal mine. Once they start widening, its time to get long OSTK. On second thoughts, if there is any one stock undeserving of its share price, its god damned OSTK.

Money managers were leveraged to the hilt going into February, full of confidence and a wide margin for error from January’s gains – myself included. Now funds are blowing up and being liquidated, and sell orders are stacking up as quickly as positions unwind. The knife cuts both ways and it’s never fun being on the receiving end.