Trade

Sold SDS (S&P 500 Ultrashort) today. Unfortunately, I bought it on the November 20th lows, and I'm taking a 2% haircut.

This trades more with the volatility index than the S&P. I just don't see volatility going back, even to 60. Take today, for example. The market takes a 281 point, 4.09% bruising, and the VIX is +5.5% to 50.27. It's just not jumping that much. I'm also getting a little nervous about being so short when the market is ignoring good news.

I'm also thinking of closing my DUG oil ultrashort. With gasoline demand up yoy for the past three weeks, maybe this is as low as oil goes. On the other hand, maybe I'll short more PXE, for two reasons. First, the Obama administration is anti big oil, and second, the oil companies will have big problems if the long-term price of oil keeps falling.