March 19, 2009

Our methodology required to continue scaling in UYG in spite of large draw down. The strategy seems to have succeeded. Normally we do not recommend scaling in over such a wide range, but in this case our indicators dictated extreme aggressive buying around $1.5. The staring point was a light scale in at over $6 and the residual position if any from prior profitable trade. Our average is $2.6. For some accounts this may have become an over sized position — not a preferred state. Consider trimming heavily right here at $3.10. Consider buying more on dips.