Now the Bad: Small Cap Short Poops it

This morning I touted the good, and so now I’ll try to remain unemotional in displaying the bad. I had to get rid of the small caps short (TZA) to limit the loss. It’s annoying to see a perfectly flawed chart like that get rammed upward and sometimes it seems like the market is just toying with people who are either not strict in-day scalpers or longer-term holders. With the rotten price decay characteristics of these leveraged ETFs I don’t hold them if they start to go against me. So TZA is gone now as RUT takes out the SMA 50. It’s show biz. Yesterday’s profit, meet today’s loss.


Meanwhile, here is RUT’s leadership chart vs. the SPX. It continues to be not very inspiring.

rut sex

Meanwhile, a few other indicators are starting to get repaired and the trends are, after all, up. So it always was a ‘trend is your friend’ type of bull situation. It’s the same old story, the bulls are in control until they no longer are and jumping the gun to short can get you killed or in my case above, a limited loss and some negative feelings to process.

That is because as you may have seen me write in the past, there is something in my makeup that makes me not be a very good bear. It’s not like I have a bright and sunny personality or anything; it’s just some vulnerability I have. Of course, this would be very much helped if we could actually get a breakdown in a key sector like the financials and some bear trends established. But man… if I am going to be honest, I guess I am actually pissed at myself for shorting something that was not in a short setup (which is why NFTRH+ is not doing short ideas outside of the likes of oil and commodities, which had established bear trends). My other US market shorts, SPY and Financials, are on a very short leash as well.

Subscribe to NFTRH Premium for your 40-55 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at and Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).