Sold VXX (1st Position) for 41% Gain, Positions Recap

We've sold our 1st VXX position for a gain of 41% in 6 months.

It was previously sold earlier this year for a gain of 68% in 2 months then repurchased in June.

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

We'll place a bid to repurchase today's sold VXX position up to a limit of $40.00

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

Any bounce should prove once again to only be a bounce, lasting days or perhaps a week or three into the new year.  

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

If there's more selling next week, we may take profits on another of our short positions.

We only hold TNA as a swing trade in case of a bounce and will take any profits on that quickly in case of a rally.


Our remaining major short positions are:

QID repurchased at $41.30 - originally sold for a gain of 25% in two months.

VXX (2nd position) repurchased at $43.50 - sold previously for a 100% gain in 1 month.

TZA (1st position) bought at $12.46 a year ago. 

TSLA (Tesla Motors) double-short at an average of $358

Buy Limits to Repurchase Closed Positions:

QID (2nd position) buy at $37.90 - originally sold for a 13% gain in two days. 

VXX (1st position) buy at $40.00 -  sold today for a gain of 41% in 6 months. Previously sold for a 68% gain in 2 months, then repurchased in June.

VXX (3rd position) buy at $36.60 - originally sold for a 49% gain in 4 months.

VXX (4th position) buy at $31.00 - originally sold for a gain of 28% in a month.

VXX (5th position) buy at $29.50 - originally sold for a gain of 17% in two weeks.

TZA (2nd position) buy at $13.90 - originally sold for a gain of 31% in 11.5 months.

TZA (3rd position) buy at $11.80 - previously sold for a gain of 41% in 9 months.  We also scored a gain of 35% in two weeks on this 3rd TZA position earlier this year.

TZA (4th position) buy at $9.75 - originally sold for a gain of 47% in in two months.   

TZA (5th position) buy at $9.40 - originally sold for a gain of 22% in a month.

Recapping from recent posts:

Keep this post in mind going forward:

Also be aware:

The ultimate bottom for stocks is far, far lower. 

Take responsiblity!  If you're suffering losses it is not the fault of the Federal Reserve, high-frequency trading algorithms, or President Trump.  Your gains or losses are absolutely due to your doing and nothing else.

Nobody reading this blog regularly should be surprised to see markets tanking this year.

December 11, 2017: Household Participation In Stocks Near All-Time Record 

"Reject the idea that this is a 'hated' bull market.  It's extremely over-subscribed and over-believed."

December 14, 2017: TZA About To Break 20-Month Down Trend

December 15, 2017: Everyone All-in?

"The masses riding a mania wave they don't comprehend, unhedged and deeply in debt, will learn a very hard and extremely expensive lesson in mean reversion."

January 12, 2018: It's Not Different This Time

January 31, 2018: US Financial Conditions Index Signals Extreme Risk

There have been a great many more such articles posted throught this year, often sourced for free from the world's major investment banks so it's disingenuous to blame "them" - not Goldman, not "the 1%", nor the market makers.

If we can easily do it, year after year and bust after boom as we've proven via this blog since 2006, then so can you.

It begins by taking responsibility. 

Being long stocks this year was an act of extreme greed and willful disregard for market fundamentals, history, and human nature.


It's never different.

 

SJB has posted its highest close since June of 2017

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

There's still plenty of time to very profitably short junk bonds.  

2019 should be a terrible year for bad debt.  We suggest acting accordingly in personal finances and in portfolio exposure.



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