Thursday, January 27, 2011
Bye TMV
Sold the position in Direxion Daily 20+ Yr Trsy Bear 3X Shrs (TMV) this morning for a loss of about 30%. TMV is a 300% inverse long bond ETF. I bought it as a hedge against falling bond prices some of which is happening though slow as molasses. What prompted me sell it today was the realization that over the past year I had reduced bond holdings significantly and therefore no longer needed the hedge. Like all insurance, I didn't like paying the premium for TMV, but it was protection that seemed necessary at the time. C'est la vie.
Subscribe to:
Post Comments (Atom)
2 comments:
By your sell of TMV, can one accurately deduce that you think interest rates are not going to rise significantly from here? Thanks.
J, still think interest rates have no place to go but up. TMV chart looks constructive. But since buying TMV I've reduced bond holdings considerably and shortened maturity to the point where I don't think the hedge is as crucial. Maybe there's a better use for the one whim I allow myself? Thanks for your interest.
Post a Comment