Interim Point

We just saw a Historical Event

We just saw a sad and historical event in investing history. What we have basically seen is a price capitulation of a long squeeze in the stock market run by the administration of the most wealthy country in the world. Having been a trader in Chicago since 1970, it makes Bunker Hunt and his soybean and silver long squeezes and crashes of the 1970’s and 1980’s small time.

Market Position and Trading

This morning we liquidated all of our triple short ETF’s, SPXS and SQQQ when the S&P was between 2510 and 2550.

We did this because we see a wide (basis the S&P) 21.00 to 29.00 trading range over the next six months.   That puts 25.00 as the interim swing point.  An inner trading range would therefore be 2320 to 2680. The bigger trading range would make getting long at 21.40 or short at 28.60 being the sweet trades at this point.  Obviously there will be a lot of other smaller trades around this 25.00 swing point attractive.

Short Bonds

We continue to add to the TBT double short Bond etf. Have 7 units out of 33 unit target on at an average price of 16.59.