http://www.stockrake.com

Happy Monday. Being short worked again today. I held my Friday shorts and they were working out nicely until the big rally that happened around 2pm screwed it up. Thankfully the market then fell after filling its morning gap on every major index.

NDX 2x inverse funds lost very fractionally while the Russell 2000 2x inverse funds did about 1.5%. Overall a good day that was ALOT better around 11:30 am. The rally came on the backs of a few Fed gov’s comments that the employment situation we saw in the jobs report last Friday “..is the beginning of a trend.” Meaning, the FED might know whats going and that took some fear out of the marketplace for a few hours.

I still hold my index funds short and also hold TWM. I was smart enough to dump a TWM position I had in my IRA around the bottom netting gains of more than 4.5%. The TWM should have closed with a .77%x2 =  1.54%, but TWM closed with a 2.49% gain. Thats a significant difference and it was happening all day. The difference between TWM and the R2K price at the bottom of the day was 3.6% vs 5.4%ish. Very significant, so I took the profits in one account and still hold TWM in the other. Sometimes these 2x etf’s do that, while the mutual funds at Rydex, ProFunds, and Direxion tend price more closely to 2x.