We were filled at 26.44 per share on the SS0 (S&P 500 Pro Share Ultra). Today the SSO closed at 23.65. Even though we’ve had two huge days in a row we are still 10% lower than where we sold it last. I hope we don’t have to buy it back higher – but if we do, we do.
Obviously a huge day in the SPY. We dumped the SPY at 85.35 in the M48 model. Today it closed at 85.03. The M48 is still 100% cash. I’m looking at USO for the M48 model. Looking – not buying yet.
Thoughts – not recommendations on Gold and Oil:
We mentioned Gold last week on the Pro Investor Show and said it was a buy if it broke out above 775. The DEC contract closed today at 819.50. You can play this using the ETF – GLD. GLD closed today at 80.91. Resistance possibly at 82-84 range, definitely at 90. I will wait for it to pull in a little and hold. If you are already long, I would have a stop at 70 or maybe even tighter at 71.49.
If you are thinking about the Texas Tea – using the USO. My stop would be placed at 39.36. Closed today at 44.13. If you would like information on a crude futures contract(s) – please email me.
When inflation returns I believe Gold and Oil will trend much higher. However, always use stops– regardless of time horizon.