SSO Trade Update and New Trade Recommendation

Well the SSO trade was filled if using the buy limit stop order suggested earlier. Today washed out a bunch of stop orders and has reversed hard. Now the priority becomes protecting gains and setting a good exit limit.

For the time being place a stop loss at 22.00. If the market rises into tomorrow, then place a "sell limit" order of 24.50 to exit the trade.

Now for the next order of business is to enter a trade that correlates inversely with the market to take advantage of the likely large decline to come in the next couple months.

So, here is the next recommendation which should be a high probability trade but will have to allow some volatility for a few days.......


New Trade Recommendation:

Place a "buy limit" order to buy BGZ at 62.00; OR place a limit order to buy SDS at 72.00.

BGZ will fluctuate about 3 times the amount of the S&P 500 and will profit as the market falls. SDS will flucuate about 2 times the amount of the S&P. So BGZ is more volatile but will give a bigger absolute return if the trade goes in our favor.


Keep this order in place over the next few days to try and get into the trade if the market rises a few percent over the next few days.


Pete