What a year, huh? A lot of volatility, crazy happenings around the election and overall a 10% gain in the SPY. So, what did I do for myself? Nothing good. As with every year, I think I can trade my way to profits, and that hasn't worked. Maybe it works for other people, but never has for me.
So, I am back to trying a sensible long term strategy. This time, revisiting this strategy of shorting the leveraged ETFs. I think I spread myself too thin last time, a lot of different ETFs, and trying to guess market direction, instead of using the daily rebalancing of the 3X ETFs in my favor.
So, I am now short $JNUG, the Junior miners 3X ETF. I am offsetting this with a long position in $GDXJ, the single junior miners ETF. I am using about a 2.6% ratio rather a flat 3.0 as would be indicated. I'll let you know how it works.
From my observation, $JNUG is one of the most volatile of the #X ETFs, and is also available to short on occasion. I got some. We'll see how it works.
Thanks for reading, I'll let you know how it works out.