Still Heavily Hedged

Don’t misconstrue my hurried exit out of ERY. I do not like to hold 3x ETF’s for a long period of time, due to decay. Seeing the market rally, while ERY was up, prompted me to quickly exit. However, I still remain steadfast with my VXX position, now more than 21% of assets.

I bought GWW based upon a new accuracy tool in The PPT. It’s not available for public use yet, as it is still in BETA. However, I can tell you now, without equivocation, it is mathematical harmony at its finest. It takes the Godly, and often referred to, OVERSOLD/OVERBOUGHT indicators and tests the readings for accuracy. In other words, I am able to search our data base of 4,400 stocks+, plus ETF’s, for the most accurate OVERSOLD/OVERBOUGHT readings, using space alien magician coding, all provided by the good folks over at CAPSLOCK aka “Jeremy.”

Let me give an example:

No.	Ticker	Hybrid Oversold	Technical Oversold	Hybrid OS 3 Day – Avg Return	Hybrid OS 3 Day – % Times Up	Hybrid OS 3 Day – # Signals	Hybrid OS 5 Day – Avg Return	Hybrid OS 5 Day – % Times Up	Hybrid OS 5 Day – # Signals	Tech OS 3 Day – Avg Return	Tech OS 3 Day – % Times Up	Tech OS 3 Day – # Signals	Tech OS 5 Day – Avg Return	Tech OS 5 Day – % Times Up	Tech OS 5 Day – # Signals	Price
1	HRS	Yes	No	1.82	100.00	2.00	3.35	100.00	2.00							44.85
2	NFG	Yes	No	1.29	66.67	3.00	4.93	100.00	3.00							47.57
3	GWW	Yes	No	3.07	100.00	3.00	5.34	100.00	3.00							104.11
4	UN	Yes	No	-0.68	33.33	3.00	3.90	100.00	1.00							28.26
5	EMR	Yes	No	0.43	50.00	2.00	3.20	100.00	2.00							44.85
6	SLT	Yes	No	-0.11	50.00	4.00	1.89	75.00	4.00							14.62
7	DHR	Yes	No	0.80	33.33	3.00	1.90	66.67	3.00							39.11
8	ACH	Yes	No	1.13	66.67	6.00	1.28	66.67	6.00	0.73	100.00	1.00	4.44	100.00	1.00	20.13
9	SQM	Yes	No	-1.21	0.00	3.00	0.59	66.67	3.00							33.78
10	DAC	Yes	No	-3.39	0.00	2.00	-0.14	50.00	2.00							3.82
11	X	Yes	No	-1.82	33.33	6.00	-0.51	50.00	6.00							42.19
12	BHI	Yes	No	-1.58	40.00	5.00	-1.77	50.00	4.00							42.21
13	PCP	Yes	No	-2.49	50.00	6.00	-0.59	50.00	6.00							108.33
14	QLGC	Yes	No	-1.92	50.00	6.00	-0.58	50.00	6.00							17.71
15	SORL	Yes	No	-1.81	50.00	2.00	0.49	50.00	2.00	-7.00	0.00	2.00	-2.89	0.00	2.00	9.05
16	PTNR	Yes	No	0.80	62.50	8.00	0.02	37.50	8.00							16.42
17	WLT	Yes	No	-2.34	25.00	8.00	-1.53	37.50	8.00

In summary, I am still waiting for a pullback and have a plethora of names on my “to-buy-list,” when the time is right. However, with regards to 3x ETF’s, do not hold them, as if they were ordinary short sales. They are far more sinister and more conducive to chapter 11 bankruptcy filings, than a portfolio filled with a fuckload of  toxic CDO’s, literally.