All You Can Eat, Baby

My only position walking into today was a long TZA trade (triple-short the Russell 2000 Index), taking inside 12631 yesterday and playing off my “All You Can Eat Divergences” blog post from yesterday morning discussing the many small and micro cap divergences in the market.

Just now, I scaled a piece of the position. I still think small caps are a major warning sign here, with the potential for multi-year tops very in play here and with the micro-caps, especially. I retain a small piece of the position and will soon decide whether to hold through the weekend.

Here was my note to members:

Sold 1/2 of 1/2 position Long $TZA @ $17.11 from $16.42 entry to lock in part of the win into this small cap sell off. 1/4 position left now.

12:52:09pm EST on Aug 1, 2014