Brexit but make sure our portfolio is still exist!

When there is a market event, a lot of traders are keen to speculate their views by trading directionally with the hope that if their are right, they can make a good fortune. Brexit/Bremain was a key event and the whole world was watching it. I was also following this event pretty closely to ensure that my position was well protected before entering the uncertain Friday.

Before this historic Friday, the odd of Brexit was pretty low. Not many people (even expert) would think Brexit will happen. As a result of this, S&P rallied with GBP while US treasury bonds and Gold plummeted few days before the polling day. I decided to hold my few SPY long put positions (bearish view) as I believed SPY had already price-in Bremain. My view was that if Bremain, market should have limited upside move (since it was already price-in); however if Brexit, market should crash because of the unexpected/surprise. In other word, the risk of buying SPY did not warrant the reward on the day prior the polling day. I was also ready to absorb losses of all my premium paid if I was wrong. The unexpected result on Friday did turn out to be favorable to me. I reaped over few hundred percents return (not much though in absolute amount) and I exited all my straight long put positions on Friday. 

As I am currently business traveling in Taiwan, Elite bookstore has become a must go place for me especially in this summer when outdoor activities may not be a great choice. I discover that there are a lot of books translated from japan to mandarin. One of it is candlestick technical analysis, which was originated in Japan and promoted to the western world by Steve Nison. I found a lot of great books that explains candlestick in detail, which has become my material to further strengthen my technical skill in trading the market. 

My portfolio is growing strong in June and I will share more in detail when I have the chance. Have a great evening!

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