I sold my short treasury position. I made 6% on ProShares TBT (20+ yr), and 1.5% on the PST (7-10 yr). I think the Fed will get a strangle hold on the yield curve again, driving rates down more, especially on the long end. So I ran for cover.
I’m holding onto my short oil position (SCO) because I’m up 35% on that in matter of a week, and I see oil headed back to $30/bbl or below. When it gets to $35/bbl I start loading up with Oil ETF’s again: I see that as the easy money bet
I’m double-long the S&P500, but I bought to early and I’m down about 8% so far. That bet has me nervous but I still like how the market is behaving. I increased that already six-figure bet by another 25% just a moment ago. I would be buying calls but those are too expensive. This is essentially a bet on Obamatism, and approval of big stimulus package drives Q1 rally.
When S&P500 gets to 1,000, I dump my longs and start building my short position. However, I wouldn’t be surprised if we see 1,100 or higher on this false rally.
However, with all that work trading, my accounts are merely flat since Jan 1st, with the short-S&P500 postion washing out gains on my short oil and short treasury positions. No progress so far.
You ask me WHY I’m long this market? Because with every nasty blast of bad news this market has shown considerable fortitude over the last several weeks. Again today, half million jobs lost and the market *yawns* merely dropping less than 2% and showing resistance to go below 890 on S&P500. This is a day the market could have rightfully dropped 5%.
