First rate hike by China's central bank in 12 years, to 5.85% from 5.58%, creates selling in the morning. I sell NX and WIRE.
Trades
Sell NX
Sell WIRE
Both hedged positions
The broad market is rebounding as I type so it may be a mistake to get out. However, in my overall strategy, each trade has a limit as to how much of a loss I will take. I got out and will live to fight another day. It is easy to argue with the market and find reasons, real or imagined to justify holding on or adding more, however, stubbornness in traders (vs. value investors) is rarely rewarded.
Central bank rate hikes are rarely a positive sign, despite the rally in the U.S. with the Fed barrage of hikes. Old timers might know what I mean about rate hikes, the newer traders would wonder what the fuss is about.
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