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Probably the worst day my portfolio has seen in a long time. The third consecutive with major losses across all sectors. The only things doing well is Oil & Gas and Healthcare. $GUSH and $ERX are both up a decent.
The biggest reason for what we are experiencing in the markets right now is the rising bond yields. However, this is not a new thing. The treasury yields periodically do rise and fall and usually rising bond yields are short lived. Below is the ten year treasury and it is currently up to 1.55%. I speculate that we will see a 2% TNX in the next month or two.
We see that since 1990 the ten year treasury yield is trading within a parallel channel, staying right under the 180MA on the month chart.
The truth is, we don't know when the shift back into tech and growth will happen, and if you are holding tech I can sympathize with you. We are seeing a lot of cheap tech stocks that, when this blows over, will continue their reign. Companies like Apple, Facebook, Zoom and more aren't going anywhere, and I am making a case for dollar cost averaging down to the bottom. If you don't need the cash and can wait out this transition and rising yield period, this could be a golden opportunity that we don't get very often.
Today, I cut all of my non-important, non-attached positions. When the ship is sinking, you need to through all the extra baggage overboard. After doing that, I bought into the financial sector- $FAS to be specific. $FAS is a financial sector 3X bull ETF managed by Direxion. This seems like it will do 'less bad'. Calls on the SQQQ would be paying right now. REITs don't seem to be losing to much ground, however real estate is doing decent but that could change.
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