Short & Swing Positions Update, SJB

Here's yet another update on our short positions and repurchase attempts for 2018.

Please see yesterday's post for a full update and current bids to repurchase sold positions.

Today we sold a TZA position for a 31% gain.

We'll place a bid to repurchase that 2nd TZA position at $13.90

We again added to our TNA position at $43.25, which now cost-averages to $44.35 over the three positions. 

With TNA we're hoping to capitalize on a market bounce, as we did in early November when we flipped it for a gain of 19% in 9 days.

This time we'll probably try to sell the respective positions for 5% - 10% higher than our average cost, but much more important will be what opportunity for profit the market chooses to offer us... if any.

While a big bounce through the new year is increasingly likely, should markets instead keep plunging we'll just try to trade our way out of this very overweighted long position.

Equities overall are finally oversold on a short term basis while a bit overbought in the intermediate term, and massively overbought, overvalued and overbelieved in the longer term.

So far selling has been totally orderly, with no sign of panic.

It is often from oversold conditions that panic selling occurs, and if that happens we'll sell another of our levered short holdings.

Please keep in mind this blog is a diary, not a recommendation of what to do in any way.

If you can't grow your account during bull markets, or if you're not considerably up so far in 2018 despite most indexes and stocks being down for the year, it is a terrible idea to try to time bear market bounces. 

We now hold 2 positions in VXX, 1 in TZA, 3 in TNA, and 1 in QID.

 

Keep this post in mind going forward:

Also be aware:

The ultimate bottom for stocks is far, far lower.

SJB has posted its highest close since June of 2017. 

Our 6x position shorting junk bonds via SJB is looking very good.



PLEASE READ DISCLAIMER AT BOTTOM OF PAGE