George Soros Gets Short – Big Time

I know it’s hard to take investment advice from a gorilla, and if you’ve been reading / following for any length of time you’re also well aware that I am almost “always” early ( and rarely ever late ) with my market calls / trading decisions.

But what about billionaire investor guru George Soros?

Would you ( obviously ) look to take his word over mine?

It seems legendary hedge fund billionaire George Soros might be souring in his view on the market outlook for US stocks, showing a 605% increase in his short S&P 500 position (through put options on 11.29 million shares of SPDR S&P 500 ETF) to $2.2 billion.

Even though he is still net long stocks, his short position on the S&P 500 (where he owns an option which will profit from a fall in stocks prices)  has now risen from 2.96% of his Soros Funds Management Portfolio to a whopping 16.65%.

So now we’ve got Goldman ( looking for Japan to implode ) George ( creating a massive position short SP 500 ) and myself aligned.

Another look at institutional activity ( big banks and brokerages ) over the past 6 months, while you’ve been buying and these guys have been selling to you.




If you want to trade with the big boys, it might make a bit of sense to consider “what these guys are up to” no?

Markets making their final bounce exactly as expected…all be it even weaker than originally suggested.

Heads up people! Sept is not that far off now.



4 Responses

  1. Freddo August 15, 2014 / 8:26 am

    Hey your timing is horrible, I recall you shorting the sp500 at 1940.
    Very amateur…

    • Forex Kong August 15, 2014 / 8:44 am

      Actually earlier than that – then averaged in with Sept 191 puts, now sold for profit.

      I bought the first lot at 1888 actually, then at 1910, 1940 and the last at 1956!

      We buy “small orders over time” around here as a fundamental part of the trade plan.

      I’ll now be looking to build into Nov puts over coming weeks.

      The Members Area / members don’t seem to have any trouble with it…as the “staggering of orders” has proven a very successful strategy.

      Those looking for a “silver bullet” on some “one day market call” are dreaming.

      Perhaps this will help you in the future:

  2. time August 15, 2014 / 9:20 am

    Hi Kong.. looking at Oct for any more major sell off.. the monthly candles in the same time in 2007 looks exactly like now.. mkts up in anticipation of more qe next week due to Jackson hole perhaps.. smart money taking the opportunity to accumulate puts since they know qe is over till the next crash

    • Forex Kong August 15, 2014 / 10:18 am

      Exactly….although I’m looking for sell off much sooner.

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