I'm sure glad I was open-minded about bullish positions. It saved my bacon today. Here is a chart from ElliottWave.com illustrating the extremely negative sentiment which, in their view (and I agree) set the stage for a potent wave 4 advance.
Earlier today, I bought into QLD and SSO. I remain long DBA, although I'm a little dumbfounded how it seems to be just sitting there, doing diddly squat, on a day when OIH shot up nearly 10% and all the indexes rallied huge. A net daily change of 0.42% just doesn't get my blood pumping.
I still have plenty of shorts and puts, and obviously they took on some damage today, but few very were stopped out. I am comfortable hanging onto this blend of positions, and I will update stops regularly. I imagine that, if we continue easing higher, more and more shorts/puts will drop off, and I'll supplement my long positions. We'll see if the color of my portfolio moves from an even split to outright bullish.
This is all about (a) capital preservation and (b) opportunistic gains during our wait for the next big plunge, which could be many weeks or even a few months off. Until then, let's continue to do our best and use charts as our voice of reason in a world gone mad.
