A time to Settle In

Short S&P Position

For a little over two years we have bought leveraged short stock ETF’s SPXS and SQQQ during weeks when the weekly RSI was over 66.0.

For regular subscribers you know the reasons, for new subscribers, please feel free to scan blogs from that period.

Those positions were liquidated last week at a level that our work indicates will be a swing point in the short term, 2510 basis the S&P.  We ended up with around a 60 % total gain.

What Now?

So we are essentially in cash and are building a position in a leveraged short bond ETF, TBT.  We at the moment have a position equal to about 7 % of our total portfolio in short bonds.

Average TBT position today is 16.62.

Short Term S&P Trading

Short term swing trading in the S&P may help with boredom during the virus isolation period.

Here is a chart to show parameters.