Well it has been a decent morning for me–not profitable, but not negative.
As you might suspect I bought modest positions in Proshares Ultrashort SP500 (SDS) late yesterday. As always when you hold these short positions it is a question when to unload the shares.
It seems like on these 500-1000 DJIA down days the safer issues (CEF and utility preferreds and baby bonds) are not moving much lower–seems like shares have moved to stronger hands after the illogical sellers unloaded them last week.
On the less than investment grade issues seem like there are still plenty of bargains being created–although todays bargains may be next week fire sales. Look at the big loser list.
This afternoon it will be interesting to see if folks ‘bail out’ prior to the close. Odds are I will hold my SDS position through the weekend–opening myself up to a spanking on Monday if we get a pop–thats life.
After the strong market performances this week my personal accounts have now moved nicely toward breakeven for the year–not quite there yet. I have 1 account down 2%, one down 4% and another down 5%. If I had more time to spend at the computer those numbers could be better–but I am satisfied.