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Current Strategy, Buying QID

|Includes:ProShares UltraShort QQQ ETF (QID)

As noted previously, we have existing market shorts (primarily TZA and VXX) which are below our entries but will serve their purpose and likely offer profits once markets turn down in earnest. That time is overdue and, we believe, upon us or nearly so.

In the meantime, despite showing losses on those hedge positions, thanks to many winners our portfolios are at all-time highs and in the case of stocks, including those paying dividends if applicable, that are far higher than our entries we're putting tight stops on at least a portion of holdings if not selling portions or entire positions outright. "It depends."

Ideally, we sell enough to effectively make the remainder free of cost and we'll adopt an additional market short position.

QID looks set to break its downtrend, as seen on the chart below, though we caution it has not yet done so.

A close above $58 would seal the deal, and we'd be buyers at that point with a stop at $54.40 which is just below recent lows.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in QID over the next 72 hours.

Stocks: QID