Taking a Few Profits Here
The market is short-term over-sold now and should be able to stabilize, assuming this isn’t The Big One. (Take a look at the 60-minute stochastic for SPY.)
So, I have taken profits on a small number of my SDS shares (the double-short SPY ETF). I will use the profits to sell into any dead-cat bounce from here.
My portfolio is still 90% leveraged short, and I am just exercising my discipline to buy-to-cover on weakness.
P.S. Sorry it took me so long to make the bear-call last night. The market is complicated and I can’t always solve the puzzle as fast as I would like. I hope that you’ve been paying attention to my blog motto at the top of the page…
June 18th, 2008 at 10:52 pm
Hey, glad someone else thought the same way I did. With SKF, SRS, QID, SDS, and DXD, I thought it was time to de-leverage my risk a bit. I sold a third of my QID (which I had added yesterday) and all of my SDS position.
Like you, I will be shorting if we get any near-term relief. And when will that Russell 2000 turn… looks like a flag right now, but that sucker is holding out to the end.
June 19th, 2008 at 8:11 am
Hi Matt,
Yes, the Russell has held out the longest, but it’s a broken-down bear flag now. It’s toast.
Matt