Last week I sold all of my NVIDIA exposure. Everything.
Sold 50% of Amazon, Apple, Google and Microsoft exposure, then sold short calls
Doubled long put positions on all the indexes
Sold short calls on GLD and SLV
Doubled short USO positions.
In total, $2.5 million in options in the book.
And I’m closing on a rather nice home in Tokyo today.
This is not financial advice.
Good luck
Don’t be fooled by this Deepseek bullshit. That’s just a shiny object.
The real reason for the market pullback is the hot money borrowed in Japan, having to return home.
Once again the Yen carry trade causes chaos. The carry trade bros are HIGHLY levered so even 25 bps hike is like Mt Everest. Their borrowing costs just doubled. So they need to get the money out of the U.S., converted back to Yen and pay off the loans and lines.
All this hot money was in the Mag 7 and it’s going to get crushed today as the money comes out.
I’m not going to be surprised if gold and silver get hit too. That’s usually what happens when the margin call man comes knocking. However there is a possibility that commodities do relatively well. Including oil.
I love days like this because I’m always prepared for days like this. The days when the tide goes out and all the naked people are embarrassed.
But have no fear. In a couple of months or three the markets may be back at all time highs.
Good luck
