Among my fifteen bearish positions, there are only two blights, each of which is down about 10%. Instead of dumping these, I’ve actually been augmenting them.
The first is the oil/gas producers ETF symbol XOP, which has been stomping higher for weeks, thanks to crude oil’s growing price.
To say we’ve penetrated the pattern would be a terrible understatement, but my spidey sense is that this giant pink pattern will eventually complete and lead to an historic drop. I am short XOP and, in a separate account, I am long August $105 COP puts (which is virtually interchangeable).
In a totally different sector, my other headache is Bank of America, which threw off great profits for me back on March 4th (nearly a 100% overnight gain) which kind of infected me with a fondness for the stock. Since bottoming on March 10th, the stock is up about 10%, and, as with my COP puts, I’ve simply bought more.
In this case, I’ve long August $45 puts. I feel more strongly about the prospects for BAC than I do XOP/COP.
I have every confidence that both of these stocks will, in due time, write their apologies for these recent ascents and lay them at my feet.
