I will probably never be known as a perma-bear, and if I have identified one weakness in my financial market makeup it is that I tend to get a bit emotional when short the markets. I think I know why that is too. It is because, just like the gold bugs who are sometimes criticized here, I think I know the truth about how what I consider an illegitimate financial system runs. When I take morally superior positions against that system it really pisses me off when it flies in my face.I am just telling the truth. I tend to get a lot of things right in the markets and usually net out very nicely in my trading and investments. But this is a weakness.
All that said, I continue to hold several short positions including the ultrashort real estate etf, SRS shown here. They are back testing the breakout this morning but I don't buy it. Thus far my shorts (China, real estate, financials, euro and oil which has been closed out) have been an easier hold than normal I guess for two main reasons; 1) They are just acting normal, which I can deal with chart wise and 2) My macro research points toward events in line with a short term bearish stance.
Anyway, here's the chart showing the back test.
