Bought SDS last Friday @44.63 expecting a near term collapse of the markets in general. All indices are at or near 52 week or all time highs so the frothiness is well apparent. Only problem is whether or not we get the correction so widely expected and desired or does it continue on its neverending upward spiral. History says we're right but can we handle the heat if the market disregards all of this and SDS continues to slide? I will hang in till it becomes painfully apparent that no correction is coming. Can't predict at what point that will be but about a buck and a half lower than here will probably cause me to move off my position.
44.22 after hours and 44.19 is 52 week low. I want to think this area is the bottom and a short violent swing higher will start tomorrow with some run on Cyprus banks, causing a profit taking event. Never have I seen little to no profit taking over such a long period. Risk for me looks like 44, and reward is 49 or higher...The key confidence booster will be to see 1562 fail and close lower on high volume tomorrow.