Just a quick note to say I think the market has had its major top.

I am going to wait for a pullback tomorrow (Wednesday 25th July) and have an open order to go short SDS at $51. Hopefully this will get filled in the next day or two.

My reasons for going short via SDS are two fold. Firstly, I am happy with my current gains and wish to lock them in. At this level, rather than sell positions and incur the taxable gains, I can retain them and go short via one ETF. Secondly, SDS gives me exposure to twice the movement of the S&P500. The S&P500 is the weakest of the major indexes currently and is well off its high of 1555. I would hate to be in this ETF when the market is moving up (just take a look at a 1 year chart!), but in corrections or where you want to hedge against a fall, this ETF is perfect.

I have suggested previously that investors raise cash, which I have now done, and prepare for a correction. In buying SDS, I hope to ensure I receive some protection for the stocks I have retained.

Good luck,

Philip John

This post is for entertainment purposes only. No part of this post should be construed to constitute investment advice. The author is not an investment professional and assumes no responsibility for any investment activities you undertake. Prior to undertaking any financial decisions, you should contact an investment professional.