This post was just published on ZYX Short Change Alert.
Our algorithms that have been carefully monitoring potential of further short squeezes between now and the year end have just given a signal that the probability of a major short squeeze between now and the year end has significantly increased. In view of this signal, consider exit or partial exit on a number of positions.
Going forward, the plan is two folds:
1. Initiate or add to the positions being exited now at higher prices since the fundamentals of these positions remain poor. In other words, the exits are simply a short-term tactical move with the intention of reestablishing these positions at higher prices.
2. Focus on positions where the probability of short squeezes is less. Recent examples of such short positions include silver and oil.
To be clear, this call is not based on the fundamentals of these positions but due to the technicality of further short squeezes.
Consider completely exiting the following position.
XLP
Consider reducing the position size to a maximum of the value indicated on the following positions. In other words, the value indicated below will be held going forward.
P 20%
SPY 5%
STJ 5%
Consider continuing to hold the short positions not listed here.
Aggressive investors able to handle risk may consider holding up to 100% of P by adding more on spikes. For tracking purposes, up to 100% will be held.
