Markets are good at sending warning signs…against hubris, greed and whatever drives people to degeneracy and excess. Wild swings in particular have a tendency to expose gluttons because they tend to suffer disproportionate losses when the market goes against them. Making large bets with borrow money and complicated financial products (derivatives) to mitigate risk provides a false sense of security. I suspect the coming storm is likely to claim a few over-leveraged players.
I sold my TZA position for a 1% loss. I’m not crazy enough to hold a 3x leveraged (bear) ETF over the weekend. Rules are rules. I also added to my SH position (short S&P 500), putting my discretionary trading account at 61% cash and 39% equities. My quant portfolio is 90% equities and 10% cash.
Remember, trying to predict the future is futile.