October 14, 2010

Our model is warning of a shallow correction. The accounts giving priority to low turnover may choose to do nothing, but aggressive accounts may consider hedging all long positions here. The least expensive ways to hedge are S&P 500 futures right here at 1177  VIX futures or VXX etf at $14.18. For performance tracking purposes, we will not hedge here but exit all long positions if S&P 500 futures touch 1220 or back off from a price over 1210 .