Buy on rumor, sell on news

I was very surprised Monday morning when sentiment turned around and the market went into decline.

Perhaps people were nervous that the House wouldn’t approve the budget proposal, but it seems more likely mixed economic news prevented any sort of euphoric  reaction, or people realized that an agreement to add another trillion or two of debt really isn’t cause for celebration.

I held onto my $24 September VXX puts, but I sold out the XIV positions that I bought in the low 15s on Friday.   I would have done better to sell at opening, but I still made a good profit.


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