Pennant shot down. Market shot down. Take a couple of shots of Wild Turkey…

Posted on Nov 17, 2011 by in Letters

Talk about fickle. We never sit on an idea or a position.  One of our concepts is that of the hairtrigger stop. Which means market conditions can chase you from a position like a hare fleeing a coyote. Today prices fell out of the powerful pennant. We are hedging our SPX longs. This may be percipitate — institutions are making every effort to drive the market higher and in these treacherous markets you never know whether they will actually close the market higher.

But every body and his Congressman knows about the pennant and will be betting on it.

Note that we are hedging, not liquidating. We will try to lift the hedge for a profit when this downwave exhausts itself.

Gold is also taking a beating — along with silver. We closed our trades in these metals.  But didn’t short.

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