As I’m typing this (Monday evening), I have 78 short positions and just 2 longs (GDX and GLD). I am certainly not positioned for any kind of bounce. However, a bounce is precisely what “should” happen, since the measured moves have either been fulfilled or have come awfully close to doing so.
My plan during bounces is to simply be “less short”. I assure you, if we get the bounce to just under 2000 that I am anticipating, I won’t be short 78 positions. I’ll be short 200.
