Macro Tsimmis

intelligently hedged investment

SELL ProShares Short S&P500 (SH), Short QQQ (PSQ), & Short Dow30 (DOG)

Posted by intelledgement on Tue, 21 Jul 09

We still believe there is a lot more “down” coming, but for the time being the bulls are clearly in charge here, and we remain chastened by our error in staying short during the rally last November-December, which cost us a 29% haircut.

So despite continued rising unemployment, falling house prices, deepening government debt, and  a weakening dollar…despite looming commercial real estate and credit card default issues…despite government policies that seem tailored to extending and worsening the economic decline (bailing out failed institutions, failing to address serious systemic flaws with respect to the market for synthetic “securitizationed” equities such as credit default swaps and mortgage-backed securities, not to mention the naked short-selling scandal, increasing health care and energy costs and raising taxes on business)…we are cashing in our short chips here to ride out the bull-market storm. This market is too volatile to ignore sentiment which can drive two-or-three year’s worth of “normal” movement into just a few weeks…even if such a move is in the “wrong” direction.

We’ll be back.

Previous index short ETF-related posts:

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