Just what the doctor ordered …
Yesterday, natural gas exploded higher on a short covering rally, and doubled that today. I sold one tranche yesterday for a 16% gain was able to sell a second tranche today at $5.75 – that tranche having been bought 4 sessions ago at $4.33 – for a 32% gain. Not bad work if you can get. I wish I could attribute that to genius, but alas I think I’ll have to settle for good fortune.
Then today, with gold and gold stocks looking grim, ERTS bought the 3rd tranche of NUGT at $19.39 at the opening on a small gap below an outstanding limit order at $19.44. NUGT closed the day at $23.28, fully 20.5% higher 6 ½ hours later after the Fed announced in the morning that they would extend their low-interest rate posture all the way out to late 2014. Christmas in January. I sold the NUGT tranche a little early at $22.07, and also one of HGU on the Canadian side at $12.47 (bought only yesterday at $11.66).
That puts the portfolio up 3.7% on the month/year, and at a new equity high from I started the ERTS reversal trading program last July – despite erosion of the short positions that have accumulated over the month as the market has rallied. They are a drag for sure right now, but will come in handy on the down days.
So there you have it, lemons to lemonade.
| TRADING | 25-Jan-12 | UPDATE | 669 | |||||
| # | Trade | Qty | Stock | Symbol | Price | Acct | ||
| 14 | Bought | 2.2% | Drxn Gold Sh 3X ETF | NUGT | @ | $19.39 | 2 | |
| 20 | Sold | 2.1% | HBP Nat Gas 2X ETF | HNU | @ | $5.75 | 4 | |
| 14 | Sold | 2.1% | Drxn Gold Sh 3X ETF | NUGT | @ | $22.07 | 2 | |
| 1 | Sold | 2.9% | HBP Glb Gold 2X ETF | HGU | @ | $12.47 | 1 | |
| Qty % is the portfolio weighting | ||||||||
| EXTENSION REVERSAL TRADING SYSTEM (ERTS) | ||||
| *********************************************************** | ||||
| 25-Jan-12 | ||||
| S&P500 | 1326.1 | 11.4 | 0.9% | |
| TSX | 12539.2 | 144.0 | 1.2% | |
| *********************************************************** | ||||
| PORTFOLIO STATUS | ||||
| Market | JAN 12 | YTD | Incep | |
| Canadian Dollar | 0.9960 | 1.7% | 1.7% | -4.0% |
| S&P500 | 1326.1 | 5.4% | 5.4% | 3.2% |
| TSX | 12539.2 | 4.9% | 4.9% | -6.8% |
| Weight | ||||
| Portfolio % USD | 34.4% | -0.1% | -0.1% | 12.5% |
| Portfolio % CAD | 65.6% | 6.6% | 6.6% | -1.9% |
| FX | ||||
| PORTFOLIO EQUITY | CAD | 3.7% | 3.7% | 3.9% |
| USD ERTS vs SP500 | USD | -5.5% | -5.5% | 9.3% |
| CAD ERTS vs TSX | CAD | 1.7% | 1.7% | 4.9% |
| ERTS vs SP500/TSX | CAD/USD | -0.8% | -0.8% | 6.4% |
| Inception is 30 Jun 11 | ||||
| *********************************************************** | ||||
| Portfolio Direction | Long | Short | Net | |
| Position | 22.1% | 19.8% | 2.3% | long |
| ETF Leverage-adjusted | 47.6% | 59.4% | -11.8% | short |
| CURRENT POSITIONS | ||||
| STOCK/ETF | SYM | LAST | Profit | WGT |
| CASH | 58.1% | |||
| HBP Nat Gas 2X ETF | HNU | $5.77 | 1.90% | 4.2% |
| Drxn Gold Sh 3X ETF | NUGT | $23.38 | 1.59% | 6.1% |
| HBP Glb Gold 2X ETF | HGU | $12.94 | 1.32% | 9.1% |
| Potash Corp | POT | $45.48 | 0.70% | 2.7% |
| Drxn Real Est 3X ETF | DRN | closed | 0.34% | 0.0% |
| Silver Wheaton | SLW | closed | 0.33% | 0.0% |
| Cenovus Energy | CVE | closed | 0.28% | 0.0% |
| Drxn Energy 3X ETF | ERX | closed | 0.25% | 0.0% |
| Cameco | CCO | closed | 0.23% | 0.0% |
| Teck Corp | TCK.B | closed | 0.19% | 0.0% |
| Drxn Gold Sh 3X Sh ETF | DUST | closed | 0.00% | 0.0% |
| Drxn Tech 3x ETF | TYH | closed | 0.00% | 0.0% |
| Claymore BRIC ETF | CBQ | closed | 0.00% | 0.0% |
| Drxn Em Mkt 3x ETF | EDC | closed | 0.00% | 0.0% |
| HBP Glb Gold 2X Sh ETF | HGD | closed | 0.00% | 0.0% |
| Drxn Energy 3X Sh ETF | ERY | $9.78 | -0.09% | 2.1% |
| Drxn Real Est 3X Sh ETF | DRV | $32.60 | -0.15% | 2.0% |
| EnCana Corp | ECA | closed | -0.36% | 0.0% |
| Drxn Em Mkt 3x Sh ETF | EDZ | $13.90 | -0.76% | 8.0% |
| Drxn Tech 3x Sh ETF | TYP | $12.76 | -1.05% | 7.8% |
…
