The indices are holding up extremely well as trade worries are on hold and a number of good earnings reports have helped to keep sentiment positive. It also helps that there was a big bounce in China overnight and that markets around the world are positive.
I have some individual stocks working like Amyris (AMRS) for example, but I feel it is time to start hedging a bit and I've instituted an index short using Proshares UltraShort S&P 500 (SDS) . Since my time frame is fairly short I don't worry about the pricing inefficiencies in the leveraged ETFs.
I tend to put on shorts not to make a major direction call but as a strategic move when I feel there is enhanced risk of a short-term downside. I am simply watching the price action and feel it may be time for a bout of profit taking to hit. The bears will have a slew of reasons for why the market will collapse. I have no interest in that. I simply want to navigate the short-term as best I can.
I instituted an index short today and will be looking to add to it for a short-term trade. It will have no impact on my long positions. I have had a high level of cash for a while as I've found it hard to build positions lately and that figures into the short position.
Right now, everyone is focused on the drama playing out over Tesla (TSLA) . It is hard to imagine that an announcement of a 'going private' move would be made through tweets on Twitter by the CEO. The stock is halted and we await clarification but if this is genuine it was one of the most blatant stock manipulations that I can recall seeing.