Well, the trend is your friend and the trend I've been seeing is a bubble deflating in some commodities, especially gold and platinum. After continued weekly declines in my 2X Gold ETF (DGP) and the Stillwater Mining (SWC), which derives a substantial portion of revenues from platinum, I decided to throw in the towel. I do believe that we are in a long term trend upward for several commodities - oil, gold, soft and hard, but I think some of them have gone so far so fast, that there's more downside than upside in the short term.
I still hold Suncor Energy (SU), a Canadian tar sands company, and I will likely buy back in on a dip on a 1x basis, but the leveraged 2x funds should really be for trading, not long term investing, given the added pain they can bring on the way down.
A few weeks back, I entered into some synthetic options plays on oil and I started to get nervous as it approached $120 per barrel that I was going to get toasted, but at $112, oil's actually below the price where I started the position ($113), so things are moving in the right direction there.
To capture some gains, I sold a few shares of Google (GOOG) after a nice run-up and my oil play of banking on a downward move has paid off.
Financials continue to perform well. My only regret is that I didn't buy more. The 2X sector ETF, Ultra Financials (UYG), was up another 8% Thursday to previous highs. Alesco Financial (AFN) in the self-directed IRA is holding up as well. Citigroup (C) preferred shares would have been nice, but I didn't make the move in time.
Next up: High Yield Munis. Deal of a lifetime in some of these. Some of the ones I posted on recently have paid off nicely already but I think there's still room to catch the runup, plus the tax free 6% yield to boot. I will likely be buying some in the coming weeks, as that nice stimulus check and tax rebate will be timed just right.