Buying SJB, VXX, NUGT / USLV Plus Excellent Articles and Commentary
Since early September of 2016 we've announced entering SJB, in order to effectively short junk bonds, three times at $25.30, $25.03 and $24.20
Today we took a fourth position at $23.65
We don't normally double up, much less quadruple, positions, however we'd stated from the start that we'd be happy to add positions and so we've portioned accordingly.
We believe it's a matter of when, not if, junk bonds tank and SJB rockets higher, and "when?" is likely sooner than later in our estimation.
Obviously market short ideas haven't worked out well the past couple years. Adhering to prudent stops has helped, and again it's a matter of when not if levered short positions will double or more in short order as markets plunge.
With complacency at an all-time low, as represented by the "Volatility Index", we're taking a position expecting that to soon change; entering VXX if it's trading above $13 and stopping out to limit losses and re-think if it subsequently falls below $11.50
Gold is looking good again, and bullish sentiment on silver is down around 11% which corresponds to sentiment levels seen before the biggest rallies of the past few years.
We enjoyed massive gains via NUGT in 2016 and early this year, with some relatively miniscule losses on subsequent speculations.
We remain bullish on gold and silver in the intermediate term, with related long positions not necessarily diarized herein, and maintain there's tremendous upside potential if gold is trading above $1300 while silver confirms by trading above $20.
For now those levels seem far off, however we'll speculate again via NUGT or USLV which last traded at $30.62 and $11.50 respectively.
We suggest stops below $27 on NUGT and below $10 on USLV if accepting roughly 12% risk, or wherever best suits your risk tolerance and existing related positions.
VXX is iPath S&P 500 VIX Short-Term Futures ETN
SJB is ProShares Short High Yield ETF
NUGT is Direxion Daily Gold Miners Index Bull 3x Shares
USLV is VelocityShares 3X Long Silver ETN
Please do not speculate via levered instruments such as these unless you're very familiar with the typical action, risk, and maintain the certainty you'll adhere to stops determined by you in advance of entering any position.
Here's an article well worth reading, we suggest, which includes some highly compelling charts and should make equities bulls quite nervous.
Other timely articles and commentary of merit:
'I Am Positioned Aggressively for a Stock Market Correction,' Says Doug Kass
The $31 Billion Hole in GE’s Balance Sheet That Keeps Growing
Today we took a fourth position at $23.65
We don't normally double up, much less quadruple, positions, however we'd stated from the start that we'd be happy to add positions and so we've portioned accordingly.
We believe it's a matter of when, not if, junk bonds tank and SJB rockets higher, and "when?" is likely sooner than later in our estimation.
Obviously market short ideas haven't worked out well the past couple years. Adhering to prudent stops has helped, and again it's a matter of when not if levered short positions will double or more in short order as markets plunge.
With complacency at an all-time low, as represented by the "Volatility Index", we're taking a position expecting that to soon change; entering VXX if it's trading above $13 and stopping out to limit losses and re-think if it subsequently falls below $11.50
Gold is looking good again, and bullish sentiment on silver is down around 11% which corresponds to sentiment levels seen before the biggest rallies of the past few years.
We enjoyed massive gains via NUGT in 2016 and early this year, with some relatively miniscule losses on subsequent speculations.
We remain bullish on gold and silver in the intermediate term, with related long positions not necessarily diarized herein, and maintain there's tremendous upside potential if gold is trading above $1300 while silver confirms by trading above $20.
For now those levels seem far off, however we'll speculate again via NUGT or USLV which last traded at $30.62 and $11.50 respectively.
We suggest stops below $27 on NUGT and below $10 on USLV if accepting roughly 12% risk, or wherever best suits your risk tolerance and existing related positions.
VXX is iPath S&P 500 VIX Short-Term Futures ETN
SJB is ProShares Short High Yield ETF
NUGT is Direxion Daily Gold Miners Index Bull 3x Shares
USLV is VelocityShares 3X Long Silver ETN
Please do not speculate via levered instruments such as these unless you're very familiar with the typical action, risk, and maintain the certainty you'll adhere to stops determined by you in advance of entering any position.
Here's an article well worth reading, we suggest, which includes some highly compelling charts and should make equities bulls quite nervous.
Other timely articles and commentary of merit:
'I Am Positioned Aggressively for a Stock Market Correction,' Says Doug Kass
The $31 Billion Hole in GE’s Balance Sheet That Keeps Growing
We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.
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posted by C. Guinness @ 11:24 PM
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