daaverage, the Qs are going down...and very soon. Sure, we'll see some bounce here, but I don't think it will amount to any more than I indicated in my post below. I agree with you that the decline should have been a lot more than we've seen since August 2. But no decline or rally is exactly like its predecessors. So...let's say the Qs rally back to 39 or above? I'm not concerned, mainly because I entered my short Rydex position at a much higher level (and I don't think any subsequent rally will top that level).
The important part of my trading regimen is to simply stake out a position at the very beginning of a trend and hold on until the trend is very much over. My charts, as you know, clearly indicate when the trends begin and end...almost to the day. It's scary at times during the counter-trends to see my profits diminish. But they never go away completely during the counter-trend periods. And when the real trend resumes, the profits come right back and increase.
We were in a downtrend before Katrina struck the Gulf Coast, and nothing has happened to change that downtrend. Correction: perhaps the hurricane and related economic factors will hasten the downtrend? One of us is right. I'm not saying it's I who is right. I could very well be wrong. But I know my charts aren't wrong.
