A Tactical Withdrawal – EEV and FXP

When I lecture to Western officers on tactics in the Soviet Army, I often close my talk by putting a question to them … Three Soviet motor-rifle companies are on the move in the same sector. The first has come under murderous fire and its attack has crumbled, the second is advancing slowly, with heavy losses, the third has suffered an enemy counter-attack and … is retreating. Try and guess … how [the] regimental commander uses his reserves to support his three companies. [I]n this situation there is only one possible answer … all [reserves] must be used to strengthen the company which is moving ahead, however slowly.
Viktor Suvorov, Inside the Soviet Army

As I said, I’m keeping a very close eye on my new short positions, given the volatile state of current markets. And, I have decided to dump two of them, given today’s rebound, viz.:

1. Ultrashort MSCI Emerging Markets (EEV) – sold today at $125.75 (about £73.32) – a sterling loss of around 2%.
2. Ultrashort FTSE/Xinhua China 25 (FXP) – sold today at $100.12 (about £58.38) – a sterling loss of around 8%.

Losses are never welcome, of course, but they are an inevitable part of investing – the key is to cut them soon and let your profits run. For now, I’m holding my Ultrashort QQQ (QID) and Ultrashort Real Estate (SRS).