The fun does not end. Today's decimation in financials brought my trading setup for the BKX Bank Index briefly below my stop for the UYG ProShares Financials Fund (which I used to trade the signal), but it closed just above the stop at $16.24. The stop is a close below $16.09, which is calculated by taking the entry price on Sept. 22 - $22.32 - and subtracting the largest past drawdown that this setup has seen - 13.93 percent - times two because I used a 200-percent leveraged fund for the signal (and halved my position size).
Just took a look at BKX itself though. Wow, what a horror show. It has actually fallen 29.1 percent since the entry price of $82.43, which means if I owned BKX itself I'd be a seller on tomorrow's open. Somehow, due to the mysteries of leveraged funds, UYG has fallen less - 27.3 percent - than BKX. Yet another weird development for our weird times. Hope you fare well this week.
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