Materials (XLB) Short Working Well

From the Trade Log on June 5:

I took my first short today, against the US Materials sector (XLB) as it rises hysterically to near the previous highs and fills a gap. I am leaning ‘reflation… not yet’ while still holding banks (KRE), commodities (DBC), etc.

Profits were already taken on KRE, DBC and the other reflation items before today. So XLB is my only reflation item and I am short it, right from that hysterical and ridiculous Jobs report gap up. No bear hero am I. It’s the only short position I have because I am loathe to short without setups. But this gap fill seemed like a good opportunity. So far, so good although I plan to cover it soon.

xlb