So much for shorting at 2,100.
We've broken our shorting line before and the week is young but, technically (yuch!), we HAVE to stop being bearish if 2,100 holds for 2 concecutive days without breaking and welcome to day 2 and we're already up another 10 in the Futures, just under 2,150 at the open so it would be an epic technical failure at this point if 2,100 doesn't hold for the day.
Similarly, we're testing 5,000 on the Nasdaq (4,575 on /NQ Futures), 18,300 on the Dow (18,250 on /YM) and 1,200 on the Russell (and on /TF) and ALL of those lines must be crossed AND HELD before we adjust our portfolios, which are still a bit bearish though our bullish Long-Term Portfolio gained over $20,000 (4%) since Friday's close on this idiocy. In fact, the only portfolio that lost money yesterday was our Short-Term Portfolio, which was supposed to lose (-$1,798) as it's primary function is to protect the LTP with hedges.
BALANCE is what it's all about folks. We're about 55/45 bearish at the moment but our bullish bets are highly leveraged and, in an insane up move like this, they tend to make a huge amount of money. We only need to make small bearish, leveraged bets in our small (started with $100,000) STP to cover our long postions in the much larger (started with $500,000) LTP.
In both cases we keep plenty of cash on the side and we use options strategies to maximize our gains while hedging our positions. Having cash on the side lets us make further adjustments playing the Futures and this morning I tweeted out or morning shorting lines and the news of the day, so I won't get into it here. We also shorted Oil (/CL) at $46 and Gasoline (/RB) at $1.425 as they've had a nice run (the one we called) and need to pull back a bit.
Speaking of great calls – if there's no inflation, why are our "Secret Santa's Inflation Hedges" all winning? This is…