There are a couple of reasons why we are doing this. Firstly, the typical bear market usually has 3 separate phases or legs of decline interrupted by a couple of rallies that last just long enough to convince investors to begin buying. Secondly, even in a bear market rally (like the rally we are experiencing now) 95% of the time the market comes straight back down and re-test the previous lows i.e. the June lows on our index. So, we are expecting the market to pull back at some point however, whether it will go all the way down to the June low is another matter. If the market doesn’t pull back and this rally sticks, then we’ll continue to have exposure in the market with GRR. On the other hand, if the market does re-test the lows, we’ll exit the position with minimal loss and preserve capital for the next confirm leg higher.
TRADE ACTION
Stop Loss : Increased to $1.05
