Good Tuesday morning. Alert: after the close we bought USD (2 x Semi ETF) @ $32.20. With this trade we kick off our bear market trading strategy where we will look to book profits (in both directions) with gains in the 20-30% range per trade. For those wondering why we aren’t using 3 x lev ETF’s, there are 2 reasons. One, there is less risk in 2 x ETF’s and two, the "wash sale rule".

The Wash Sale Rule: the wash sale rule disallows claiming a tax loss on a security if you repurchase the same security within 30 days, after the sale. As we move forward we will (at some point) return to our favorite 3 x ETF’s (for maximum gains). This trading approach will allow us to continue holding our core long term positions (at bottom of each Letter) while booking profits along the way. I see a 50% chance that yesterday’s lows will serve as THE lows. If not, we will likely have a recession in America, which would mean this bear market is just beginning. 

Futures are sharply higher this AM, wit...