Well, I have held a short position against the SPY for weeks and weeks now. It flashed profitable once or twice but has mostly sat there at a loss. It is a straight out short with no leverage, so it has been easy to hold. Today it’s actually pushing its way nicely into the green.

After discussing the potential that the Dow and S&P 500 bounces were just breakdown tests in a mid-day update on Friday, I decided to leverage up and buy the 3x inverse fund SPXS. I am now taking profit on that because the market has taught me that gains from the short side, especially when using leverage and they come on hype-filled events, should be respected, cherished and taken!  I’ll continue to hold SPY short, however.

Here is the ugly SPY chart at a point that could be considered minor resistance.  But we have better support for the S&P 500, which would still not threaten the bull, significantly lower.