Hedge update

After a few nice up days in a row, and with my recent sales and hedge ETF buys the tally stands at
Cash 12%
Hedged ETFs 6%

The 6% position in the ETFs are a bit deceiving as they are ultrashort positions meaning for each drop in their index, these ETFs return twice the drop. (or in case of rises in their index, just the opposite) - so a 2% drop in the Russell 2000 for example would return 4% with the ETF.

Pretty content with that allocation for now, and let's see where the market takes us in the days ahead. I will be interested to see if we can bring buyers back in from the sideline. It appears still to be short covering and some tepid buying overall. A few more strong days and technically a lot of charts would look much better, but we are not there yet so the downside risk is still quite strong.