This post is dedicated to Brandon, my favorite antagonist commenter.   A couple of months ago in this post, I outlined my investment strategy to help bring focus to how it works and why it works, at least for me.    It’s all about exit strategy and I exited OIH a while back when the ETF rallied way above my expectations.    Now, OIH has pulled back significantly to where it was back in the winter of 2007.

Without any type of exit strategy with the market, you’re perpetually buying, never reverting to a cash position.   During the recent market drop, I found myself holding a rather large cash position because of my ability to exit the market.   I still have holdings at a paper loss but that’s all temporary and the down swing has been cushioned by profits from selling short.

If OIH drops back down to $170, I’ll be knocking on opportunity’s door.    In the meantime, UYG and XLF are looking mighty delicious but I’ll wait till August to see how things turn up.