Well, I won’t post today about how much money I’m making in the stock market recently. These days I’m getting my butt kicked in the stock market.
I re-established my 2X leveraged short positions in a BIG way when the S&P 500 was about 5% LOWER than it is today. I cannot believe this stock market is heading over 1400 on the S&P 500. ON paper I’ve lost 10% in last 30 days across my portfolio. (It also hasn’t helped I didn’t sell my gold at $1,000/ounce, and I kept those short oil positions.)
However, I’m keeping the faith on a deepening recession taking the markets down at least 10% from here. I’m taking on more short positions, and looking at again buying put options on the indexes.
I look for markets or specific stocks which are at irrational extremes relative to underlying economic and financial conditions. I think the stock market rising (10% in 45 days on the S&P500) in this economy is irrational and it will correct downwards over 10%, probably over 20%.
