Adding 7th SJB

We hold six positions in SJB, the Short Junk Bonds ETF.

Repeating from that post in December:

"We don't suggest SJB will rise spectacularly however, since it is not a levered inverse instrument.  Instead the attraction to us is that this seems as close to a "sure thing" as it ever gets, ergo a great place to put funds as the bear market in general equities unfolds."

"Holding such an outsized position is admittedly not totally prudent, however extreme markets arguably call for extreme positions and we will certainly stop out should junk bonds trade back above the well-established down trend shown in red."

SJB last traded at $21.42

Here's an updated chart of JNK, the Junk Bonds ETF, looking poised to plunge:

And a chart of SJB showing a "declining wedge" pattern, which typically resolves decidedly upward.

Bloomberg: A Lehman Survivor Is Prepping for the Next Credit Downturn
 
We'll now add a 7th SJB position.

 



PLEASE READ DISCLAIMER AT BOTTOM OF PAGE