WHO says new variant of covid ‘Omicron’ a variant of concern. VIX (for US index) rose up to 27.9.
While sighting the rising cases of countries where mass population was fully vaccinated, i.e Singapore, Germany, Belgium, Russia - I started hedging my profits of other stocks into vaccine stocks and pharma, while they were on dips. (This was end of Oct, early November)
- Pfizer was available at $40
- NVAX at $125
- MRNA around $220
- Astrazeneca didnt correct much, but still a good buy now.
This was the time, when the indices were showing no sign of concern on the market, the lobbying for booster shot was happening somewhere in Europe.
- What are your hedging strategies here & views with respect to the indices falling?
(beyond buying puts, shorting calls in Indian market, as an Indian Investor)
- How many more days of continuous fall in the market would you wait to see - to consider this can be beyond usual correction?
- Do you feel mid next week, market can show some sign of consolidation? Can it fall further after some consolidation? (too early to discuss, maybe)
- Incase you’re invested in any crypto - do you feel it will consolidate and rise because of retail investor’s hedging strategies?
VIX for US index rose up to 27.9, that was a 46+% change, an increase of 9 points breaking its usual 200dma on 26th Nov, 2021. (if I saw its chart right)
Travel, Hotel, Oil stocks were hit harder, and IT/Bank stocks were showing the impact.
I’m not buying on dips here, until the market consolidates and VIX shows sign of stabilizing.
Note: I’m not saying there’s a crash around - but one needs to be prepared (even during a correction of 15-20% or sideways market or be it a bear market).