I sold out of my SPXL and SCO this morning at the open. SPXL was a 6% position at cost basis ($91.23) and was sold for break-even. QE3 was supposed to be escalator going up for the S&P but the escalator feels like it’s not working correctly. There’s also this post that I came across over the weekend; http://eminiaddict.com/?p=5982
At the open this morning I also sold out of SCO. It was a small position at 1% of capital at cost basis ($38.50) and was sold for a 3% gain. I will continue to hold UCO as I believe it is only a question of when and not if Israel bombs Iran. I also still have the TZA, TVIX and UVXY I had purchased earlier this summer when death and golden crosses appeared to be imminent.
Momentum has come down quite a bit in $RUT and $Silver. To the point where the next rally in each will set up a pretty clear negative momentum divergence on the chart. I will be looking to start positions in RWM, VXX and ZSL as $RUT and $Silver approach their recent highs.
