I was again off on my prediction for Friday. I thought good news from Microsoft and Juniper could at least lift the market till Monday. But after I looked at the opening and the next 30 minutes I know I was wrong.
So I acted fast, I sold my HGU at $32.60 in the morning, pocketed a 21% return since I bought it Monday. I liquidated the remaining shares of my dividend paying closed-end fund in the morning as well. So I'm down from about 75% long at a time to 30% long and 70% cash now. I could not find better chance to liquidate more later in Friday.
The weak performance of Microsoft stock and many others is telling you that we are now in a phase of sell the good news. The Fed is having their meeting the coming week plus Google is reporting earnings, so next week could be quite volatile.
The Canadian market just got 4 more categories of 2 betas, they are gold, natural gas, crude oil and global mining. In the meantime the volume are very low, but that's normal. I'll keep my eyes open on the gold one. That's gold bullion and it's not gold companies, which is different than HGU (or HGD). And I'm still waiting for their agriculture beta product.
Going back to the US market. Looking at the graph somehow I have a feeling that we can have a leg up soon. Well I don't mean the downtrend is done, but I just think some sectors may due to a bigger rebound before they go back down. For example, I would like to find a good entry point to buy some URE (ultra long real estate). But as a hedge, by that time I will also want to get into an ultra short of something. I have to think about it further first.
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