The market is becoming more volatile as of late and with the selloff last Friday, it is time to look at your exposure in the market. Pay particular attention to how correlated your positions are and the what the aggregated risk is – both in dollar amounts and as a percentage of your portfolio.
I have also observed that price reaction to earnings reports and guidance this quarter hasn’t been very positive. It is time to beware of gap opens after earnings data is release. It is better not to hold stocks into the relase date.
I only have a small starter short position with SDS and I am in wait and see mode. I will keep my exposure small until the market shows its hand.
