After catching the first two hours of CNBC, it became clear that it’s not just me. All of the analysts booked to speak had a similar opinion; the Dow is being exuberantly irrational. - Talking head #1 told how his firm had the year end price of the Dow at 12,100; we touched within 50 points of this today.
- Talking head #2 explained why he wouldn’t advise clients to put money in at this point, explaining that they would be chasing money that was already made (too little too late argument).
- Talking head #3 enlightened viewers as to how the Dow is not factoring in everything from rate hikes to terrorism anymore.
Heck, even Jim Cramer is speaking to the fact that there are no shorts left, making at least a 200 point correction inevitable. Jim Cramer is being cautious?
So call me crazy when I confidently say that you should short the Dow, even if it’s only for 200 points. That’s four percent if you buy DXD, and any money is good money.
Yes, I was wrong about a double top in the Dow, but I’m not a stupid trader (although that’s debatable) my portfolio has been right overall, and I am not selling any DXD in my personal portfolio. Becomming even more overbought will make me liable to trade some puts in the Dow mini-futures.
Don't make me trade futures just yet.
-Chris
1 comment:
Chris, I've updated my model to include an alternative return on your DPMT. Contact me here and I'll email you a copy of the model.
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