Hi Jack,
I have about 12% of my funds in two bear 3X ETFs...BGZ and TZA. Using those as hedging positions. These were recently purchased. Had EZM ladder type sales on Friday. At this point I am not really sure how much longer I am going to hold them....not very long.
Cash is not earning squat at the present time. Right now my cash position by itself is 47%. Like you, I can't find much out there worth buying that isn't overpriced at the moment. Even with last week's small sell off, the NYSE Bullish Percent reading is still over 70...currently at 73.10. In one of Tom Dorsey's books, he says that when it gets over 70 one should take out some insurance and buy some puts on their long positions, or words to that effect. That is basically what I have done with my two small positions in these ETFs.
Do not expect to hold these funds for the long-term. That would be foolish on my part. None of these 2X or 3X funds are designed to be long-term holdings. They are designed to be strictly short-term trading instruments, so your selling quickly was probably very wise on your part.
Thanks for asking about the knee. It is much, much better. Still have some inflammation in the tendons and ligaments around the new knee replacement implant, but overall I feel great. Saw the doctor this past Friday. He told me to cut down on the amount of exercise I was doing. Said I was over doing it and I needed to let my knee rest and let this inflammation heal. So, I expect to be a couch potato for the next few weeks.
Take care,
Ray
AI
