Splash Zone Weekly Wrap Up: 6/27/16

If you are finding this market insanely crazy, you are right it is. I can throw stat after stat out there that proves just how crazy June has been for traders. I mean, how often do you find the S&P 500 within 1% of establishing new all-time highs, to suddenly trading in negative territory for the year. This is why over the last few weeks, I haven’t sold myself out to the bull camp – because I have seen far too many times how bogged down this market gets when it starts trading over 2100. 

Fortunes were won and lost last week, if you ignored the risk associated with the market. I will say this though, I don’t regret for a moment going 100% cash the day before the brexit vote. Sure, holding on to SPXU would have been insanely profitable, but we were already very close to our stop-loss, and had  the “Remain” camp one, we’d probably be looking at a 7-8% loss. For me, I will take the preserving capital every time in the face of unpredictable, high risk situations. 

Over the course of the year, avoiding losses during major shock events to the stock market is huge for us as traders. While many traders took massive hits to their portfolio, and left wondering how long it will take for them to recover these losses, we are in a situation to where we can add to our portfolio. 

Last week was incredibly quiet for us from a trading standpoint, and while I expect at some point for there to be a market bounce for us to jump on, I think managing risk tightly is still important. As a result, we may see more day-trades this week.