As an update (mostly for my own records), since Trump’s tweets late Thursday threatening to escalate tariff wars with China, markets have been in near panic mode as fears increase of a global recession ahead. IMO, it’s overdone… for now. Still, the DOW closed over 767 pts down yesterday & UKX gave up 183+ points, after losing 179+ pts on Friday.
In perspective, UKX saw intraday highs of 7727+ only days ago on 30th July. Today, pre-hours, saw 7057+. Brutal! So much can change in days.
I’ve no plans to add to my 5 longs. Wish I could, but it’s too risky. Just keeping an eye on markets. Later on, trends will change yet again. But for now, it remains to be seen if today &, probably, tomorrow are merely relief rallies to be followed by more strong selling. Impossible to be sure.
Looking further ahead: I’ve no plans to start hedging with shorts again until at least 7500+ seen. I fancy more highs later after fears about trade wars calm down again & before, as seems likely, Boris Johnson’s government faces a crisis. Maybe circa October to November. By then I want to be holding only shorts again.
But for now, for me it’s sheer patience & no new trading until UKX recovers substantially. One small consolation: UKX dividends more than cover holding costs. Over 60 pts due over this & next week. - GLA.