A Small Price for the Remaking of America

I tend to be bullish on America when I think things make sense in Washington and bearish/long gold when things don’t make sense.  No doubt one could say on the whole that I have been naive in assuming that the Republicans and the big market players would buy into the early stages of change.  But in my opinion,  honesty and brains have come back and the macro direction is definitely set for higher markets. The outlining of the budget and banking plans along with the losses from the past weighed on the market yesterday.  Back when the market made its November 20th low we built up to a 0.70 leverage on the long side and planned to gradually build up our leverage to as close to 2.0 before the market broke up on the upside.  At the moment we are at close to that level at 1.77 leverage.  Building that leverage has been costly lately but the performance numbers we build over time don’t occur by sitting on our hands in the lobby watching CNBC.

The EMA ETF Fund NAV was 846 at yesterday’s close.  We added a little leverage to that fund yesterday, $ 23,000 in Short gold ETF “DZZ” and $ 25,000 in long dollar ETF “UUP”.  We are now pretty much where we want to be in terms of positions for this stage of the cycle.

8:09 AM CST