leh

Exploiting the Downside of the Markets

The trend remains down until proven otherwise, and there is still significant risk to the downside here with commercial real estate bonds starting to implode. The relief rallies lately have been pathetic and the institutional buying non-existent; go long at your own risk here. The financials are telling us a story this week--anyone not listening will pay the price.

Instead of shorting, though, I'm playing 2x inverse ETFs like SKF, FXP, SRS, etc. Measured risk and leveraged potential reward if your timing is good. Take a look at the performance of OTM NOV call options on SKF Wednesday--close to a 1000% gain in one friggin trading session.