As my bulging "Long Positions" watch list indicates (see right column), I'm into this market on the bull side in a big way. However, I am hedging my bets with three largish positions:
- Long SDS (that is, ultrashort $SPX)
- Long SLD (that is, ultrashort $UTIL, which I probably will hold a while)
- Short DIG (see graph below)
With the exception of SDP, these are simply hedges based on the FOMC/GDP nuttiness we're probably going to see in the next few trading hours.
