Market On Open, Wednesday 4 June

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Moonage

by Alex King, CEO, Cestrian Capital Research, Inc

Easy money for longs yesterday. Your investment strategy if you owned equities was, go to the beach, try not to think about stocks, and do as little as possible all day. Personally this was what I did. (Not the beach. The lack of trading). I did however hedge my SOXL exposure with SOXS just before the close because, as you will see below, SOXX is butting right up at its 200-day moving average. I don’t feel like being a hero hoping it crosses over and I don’t feel like selling in case it does. So I did what I always do when I don’t know what to do, which is, hedge. (In this case 1:1 but there is nothing wrong with a partial hedge if you just want to try to catch a modest correction).

Let’s get into it.