Recent selloffs first sparked in precious metals and have now moved to tech. While the VIX is subdued, mostly thanks to the outperformance of cyclicals (XOM, CAT, DE, JPM, DOW, and so on), it seems obvious that the overall market is very volatile, with both the degree and speed of strength and weakness elevated.

Risk could either soar or plunge tmw, but I worry that tech selloffs could spread to cyclicals, which might push market corr toward 1, leaving limited way to hedge.

So I’d like to adjust my view quickly and take a more defensive position here. I’ve trimmed risk, sold most of my 10yr credits, and reduced about a third of my equity exposure.

I’m leaning toward buying the dip in Samsung Electronics, XOM, and 5yr credits.