A tiger spends all day searching for its prey. When it finds it, it hides in the shadows waiting for the right moment to pounce. Right now that’s exactly what we are doing in the market.
It’s not an environment to be buying stocks, even if you’re buying a great company at a great price. In the end, what matters is the price you buy at and the price you sell at – nothing more nothing less. The market sways above and below equilibrium, especially in uncertain situations like we have at the moment. For this reason we are maintaining extreme caution. We have just two positions and are over 50% cash.
We are building up our list of potential buys, but these buys will only be executed if the overall market begins to calm. “
One of my number one jobs is to know whether I’m hot or cold” – Stanley Druckenmiller.
Right now, we are cold along with everything else in the market. Since we are cold, our exposure dial has been turned way down.
Trading is a mental game that requires self-control, courage, perspective, and most importantly patience. We are a small player in a big arena. Therefore, we need to be formless and let the market show us what to do.
Once we see the market calming and stocks beginning to make moves higher, we will once again post more about what’s going on. But for now our dials are turned down.