Today, CCI put on its first trade of this type for the year by buying one lot of the double short S&P500 ETF (SDS ) at $17.68 after commissions. Several reasons for initiating this position today.
- The market has had a nice 4-5% run over the past three weeks and the general ebb/flow of the market might lend itself to a pull-back.
- IMO corporate earnings seem to be coming in ok....but not great.
- State of the Union tonight - One of CCI's thesis is that when politicians speak they generally disappoint. That is in no way intended to be a left/right political statement, but rather just a belief that in today's world it is challenging for any politician to make a speech that reduces uncertainty. That can lead to market nervousness.