Thursday, October 16, 2008

Get ready for sustainable move higher.

Not an insane spikes, not a short lived runup, but long awaited cease of volaility and market coming back to normalcy after complete and utterly insanity of late.

The fact that market was able to move higher today without "pre-expire" Plunge Protection Team actions is a very good news for Bulls.

Climb will start next week from Tech/Biotech ( A.K.A. QQQQ), Semiconductors (SMH), will be followed by MidCap (MDY), SmallCap(IWM), then (SPY), (XLF),(RKH) and finally in 2-3 weeks (OIH), (RTH) and (XHB) will follow.
Once again, no crazy stuff - just a steady move up starting next week.
I am fully invested in UltraLong ETFs as of last week [in order of positions sizes]
(QLD)[50%], (UWM)[25%, (YUG) [15%] and some individual stocks positions (totaling for just 10% of portfolio) - no options due to expected volatility crash on wild scale, that makes me 100% net long, no puts, no shorts, no margin indeed...
All positions obviously slightly underwater [about -12%] - but I fill very comfortable for as long as recent lows are not broken.
P.S. If my point of view will prove to be correct I might even use some margin for the amount of 1/2 profit I will have in my account - IF I'll have it.