Yesterday we sold half of our Continental (CLR) position on the bounce, since it moved up over 9% in one day for us. We also sold half of our LABU position (Biotech X3 Leveraged ETF), since those shares have rallied back 25% from the lows for us (subscribe for complete portfolio).
I chose to take profits from our lower tax lots in LABU to declare a victory, vs. taking from our higher up tax lots and declaring losses, (which is what I usually do since you can get back up to $3,000 in losses in a year).
I wanted to declare the victory in LABU simply because the ‘triple-leveraged’ biotech play has put me through the ringer, plunging over 50% from its highs, and I wanted payback.
Lastly, we took profits in JP Morgan because it is now getting overbought, and hit our short-term exit target of $65.00. I still think JPM goes to $70.00.
Since the market is nearly back at the highs, I am content with staying in half cash, half stocks. The stocks we do have are leveraged, like LABU and UPRO. So, if we continue to move higher, the portfolio will stand to benefit.
What we really want is for the market to fall; for two reasons.
One is so we can buy the dip. We made over $12,000 on the snap-back, but we should have made more, and I want the chance to reload on shares.
The second reason is to prevent a melt-up. We don’t want the market to go parabolic on us, running straight-up from the bottom. We want an orderly rise.
Eyeing LABU on the 6% dip today to add to shares. Stay tuned for updates.
Buying more SSO to encourage our shorts to work. If I’m wrong, we are in plenty of cash & have the shorts (SPXU) on.
Plus, SSO is just the S&P 500 double, so I am not worried much if it goes down, especially considering the S&P 500 has always come back, since the beginning of time (which is why it is the benchmark for investors to beat).