Things look to be going my way. Speculating that the peak of the suckers rally was near, I bought SDS in the middle of a heavy rally on Friday. Assuming that the rally is a suckers rally, a reversal at 1400 is certain. Turns out that my prediction was indeed correct, the index reversed at 1396. On Monday we got a strong sign that the uptrend was ending, we got a Bearish Harami. Further, as of today, we dropped below the 20 day moving average. This week continues to look bearish, but I plan to put some stop losses in place to secure my profits. The only thing that can revive this market now is good insurers news.

Richard
richard[at]hedgeagainstspeculation.com