In line with the message of the previous post, with yesterday’s ding of the 2100 area on SPX and today’s further weakness, I covered my largest position, which was an unleveraged short against SPY. I also had a big chunk of leveraged bear fund SPXS, now sold as well.
They taught us in Market Genius 101 that you short when risk is high, not when it is reduced, as it is now. They also taught us that taking profits is always a good thing.
I think SPX can get down to the lower end of our target range, which is around 2050 (and a higher low to June), but I am reducing risk all around and retaining profits; i.e. not being greedy as we stare down the twin monoliths of stupidity, FOMC and the Election.
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