The long awaited move over S&P 1112 is finally upon us. Due to a lower than normal long exposure I've made my swing trade positions that we normally take on these breakouts much larger than normal ... I am using TNA as usual, as well as SPY Dec 112 calls (SPYLH). I don't even see a point owning individual equities at this point as every move is monolithic so we'll just use these index positions rather than bothering to go add exposure in 15 stocks.
Overall strategy is to stay in this trade unless S&P falls back below 1110. Eventually this simplistic trade will blow up spectacularly in our (and everyone else's) face but it repeatedly works, much to my surprise. I expect to take a massive bath on it at some point... maybe this trade, maybe some trade in 2011... who knows when it finally stops working but until then all the computers and their human owners will pile in.
We're going to exit our Japanese short as it has broken 11.90 which was our self imposed stop loss; so a 3% loss as the Bank of Japan caught us with its surprise move. Sort of like an earnings pre-warning for an individual stock.
Long SPYLH, TNA in fund; long SPYLH in personal account