RISK ASSESSMENT WEDNESDAY
Risk assessment Wednesday is here. On Monday, I said that I would wait until today to make a decision as to which way I would allocate the portfolio based on price action. I've decided to take down my short exposure. Continue to hold onto half of my SPXU position for the time being.
I have also shorted gold here in the form of a long position in DZZ at around 4.33-4.34 in the premarket. I spoke about gold being near a top on August 21st here.
A couple days after that post gold had a substantial slide on even more substantial volume. The manner in which it fell and the subsequent retracement of that move down has me thinking the opportunity for profit on the short of gold has potential to be substantial. I'll have charts tonight.
As for the general markets, I don't want to see the S&P 500 move over 1220. There are a large number of traders thinking that the 1240-1250 level is a slam dunk short. There's a problem with that type of consensus thinking. I believe that the S&P has to either stall out here or the move will be above and beyond anything I suspected a couple weeks ago or even today. I'll have to move to the sidelines if the strength continues. Managing risk in a treacherous market.
I'll have more later tonight.
