Dow is at 7997.28; S&P500 is at 806.58. Our cash position is back to 75%, we are still 25% long (including inverse funds). On this break, we could see (technically) a low of 681 on the SPX, Dow 7,100, and Nasdaq 1070. (There are deeper levels, but its too ugly to write now).
Last week, I was encouraged by the retest Thursday on lighter volume than Oct 10th — but lacking a high volume follow through meant we could not become complacent.
We’ve been trading in and out of the QLDs and SSOs — most of the trades have been money makers — but not the most recent buy, which we took a sale on earlier today for a loss. A large part of our capital preservation strategy is allowing the market to take us out of positions rather than fight it.
Overall, the trades from October 10th and 24th, November 13th have been money-makers. We are now looking at the QIDs — 2 for 1 short Nasdaq 100s.
On a closing basis, the QIDs are potentially a $120 stock. They really need a breakout over $88 — a stone’s throw from here.