Michael, I do not expect to be trading too much for a while. Reason ... I think this move down will be a sustained move. Need a bit more evidence perhaps, but based on the Nasdaq alone the evidence seems fairly strong. In any event if the move is sustained, longevity in a 2X fund has rewards, if one is on the right side.
I am varying my trading habits with the ebbs and flows a bit (I think). If for example I do trade in the near future it would only be for a quick out, stay out or go long for a few days, and go back in short again (assuming the trend continues down). But I don't think the NDX has established any channel boundaries yet, on the downside, so for now I stay 2X short (essentially 100 % of port).
The other thing I might try, when the time seems appropriate, and as opposed to trading in and out, is a 50/50 straddle for a few days. I would do this by taking a 50 % 2X long position.
This week was good on the NDX down side. We see next week and on into January, but the exit doors may be narrowing, in many sectors. |
