"When I get to the bottom I go back to the top of the slide
Where I stop and I turn and I go for a ride
Till I get to the bottom and I see you again" - Beatles
No, it's not a song about killing people (Manson), it's a song about a carnival slide in England.
As it says at the entrance: "Don't forget your mat" – just as we always remind our Members not to forget their hedges because, when we get to the top of the slide, we often go for a ride to the bottom, where we see bargains again and it's a damned shame if we're not ready to buy them, right?
Just as the path of the Helter Skelter is predictable, so is the eventual unwinding of a market rally and, no matter how much QE you pump into it, things do come down eventually. Only when you build on the base are you able to raise the bottom of the slide. Otherwise, no matter how high you climb – you will see that bottom again.
We had a little scare yesterday but not too much damage done, so far and, hopefully, you are well-hedged, like our Member Craigs, who said last night:
Phil I must say that it was really nice to have a portfolio that was looking very stable in the face of a rough day for the markets. I ended the day up 0.3% which includes another successful day of futures trading. So with a portfolio of mostly cash, a few of our faves like Apple and LL, JO, TOL, DIS, etc., along with a couple of hedges that paid off nicely today, and my futures trades, I never had to break a sweat during that madhouse today. Yes, by George (or Phil), I may be learning this system.