In general we don’t worry about why it’s doing what it’s doing.   We just worry about what it’s doing.  What it’s doing right now is not pretty.  It is testing the general market lows with a vengeance.  A severe test of the bull trend is in progress.

F.  We sold all of it. BAC and C while not as bad off  could well be hedged or sold, but we haven’t done that yet.  We are hedged in the Qs, being long QLD and QID.

Instruments which can be used for hedging are DOG (DOW) QID (Qs) VXX (volatility) SPXU (S&P).  As always we do not make these decisions for our readers, nor advance advice.  We point out what is happening and what we think is likely to happen in the near future.