It is now time to consider alternatives as the indicator in the previous post, the VIX, the continued under performance of BKX-SPX ratio and the declining momentum suggest. I cannot personally begin ejecting long positions until they are proved to be broken. One tact is to begin hedging in certain areas.A new subscriber to NFTRH sent along this suggestion for "capturing the commercial real estate blowup that is coming." This gentleman is the managing partner of a global investment firm and when people like this talk, I listen. He suggested a look at SRS. I looked, I liked.
Edit (10:03) Wouldn't you know it. SRS gaps up. I wait and watch to see if the gap will fill. Downside follow through has indeed triggered some sells here; MSFT for around break even, CSCO for chump change and FTEK for 7.5% gain. I suppose I will go back to watching some of the junior gold producers I mentioned in NFTRH as potential re-buys upon HUI coming down to target range. You could call this a 'mental stop' kicking in as I do not intend to play hero on stuff I do not consider fundamental. (10:33) Add FARO to the list for a loss of 7%. (2:14) SRS was added at 61.42 as it partially retraced the initial thrust. This thing moves like a wildcat. Not a recommendation. The recommendation is that the risk that had been mounting in broad markets is now becoming actualized and thus comfortable cash level would be the recommendation. (2:44) Sell target coming into view for SRS at 70 resistance. This could dovetail with topping dollar, bottoming gold miners and retesting broads. We'll just have to see how things play out. (3:46) Check that... screw the sell target. I'll take the 9% on what was a fairly sizable position. Not getting cute. Will practice what I preach with increased cash levels.
