Tuesday, September 21, 2010

Trade: Bought Drexion Small Cap Bear 3x

As the market remains in overbought levels, purchases the Drexion Small Cap Bear 3x (TZA) to hedge some of the long positions we have in the Growth, Hedged Growth, and Opportunistic Portfolios. This was done in order to protect and extend capital gains in stock that we expect to continue higher while providing some protection for a downturn back to the breakout levels around 1120 to 1130 on the SP500.

With the SP500 only having one major down day in the last 3 weeks, it was just time to hedge. This is on top of a short in LULU and some pruned positions in ICICI Bank (IBN) and Riverbed Technology (RVBD) over the last few days. Now looking at some positions to add to the portfolio on the next drop which we don't expect to be more then 2-3% before the market enters the traditionally strong November to April period of a mid-term election. Of course, you never know with October so keep a close high on whether support holds.

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