Riding The Gravy Train: Selling SJB, Buying SPXL

Riding The Gravy Train

Beating the market is fun and profitable. This is how we do it.

Sunday, March 22, 2020

Selling SJB, Buying SPXL

"SJB provides inverse exposure, reset daily, to a modified market-value-weighted index comprising US-dollar-denominated corporate high-yield bonds with maturities between 3 and 15 years." - ETF.com

Knowing with absolute certainty it's only a matter of "when", not "if", we've accumulated an unprecedented seven positions over time in SJB:

1 - September 2016 @ $25.30

2 - October 2016 @ $24.98

3 - October 2017 @ $23.18

4 - February 2018 @ $23.30

5 - October 2018 @ $22.77

6 - November 2018 @ $23.03

7 - July 2019 @ $21.42

Several times we stated: "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."

We'll offer only that 7th position for sale for $25 or better.

SJB closed Friday at $25.41

We're speculating on a near term stock market rally via SPXL at tomorrow's open.

"SPXL provides daily leveraged exposure to the S&P 500, an index of mostly large-cap US equities." - per ETF.com

No stop. If it drops significantly, we'll average in at lower prices and we'll post if or when we do.

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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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