Every last one except for a mid morning stab at AMZN. Yesterday I reestablished shorts in commercial real estate. The aforementioned SLG again and another as well as beefing up my position in IYR. Today I shorted with impunity. Still have some longs so I'm not entirely lopsided. Although maybe it's time to get lopsided because I see shorting opportunities in bunch of names. The watchlist is now full of them. Not only the ones I've liked recently but all the old favorites are back in play.
I salivate and all of the sudden need more money in the trading account to fulfill my plan for world domination. In 2008 I will rape and pillage.
Financials are going down again. Stayed away from shorting them recently for fear of a bounce. It's not coming and these stocks are making new lows. It will continue in waves and some exposure there is necessary. Leaning towards playing individual names as opposed to the XLF. Remember that the financials have been a market tell with great reliability.
The market got bashed. Dollar down hard. Bhutto assassination (Hello- Pakistan has nukes). Economic numbers continue to suck. Trannies are ugly. Metals flat to down.
Watch your ass here. If you are a bull you better plan to play defense. Like Boston Celtics defense. You better hold it down because the bears are coming with pitchforks and molotov cocktails. Good luck to you.
Friday, December 28, 2007
Thursday, December 27, 2007
So Here We Are Again...
...flirting with 1490 on the SPX. The shorts I put on yesterday seem to be sticking for now.
Wednesday, December 26, 2007
Today I Sat and Watched the Paint Dry
This is the time where so-called professional money managers paint the tape. End of quarter. End of calender year even better. This type of open secret is reflective of the fact that there is little to no regulation by oh say, the SEC.
There are more longs on the watchlist lately. Oil names. Gold. Which by the way is breaking out of it's consolidation and awaiting the confirmation of new highs. Silver should also be watched closely for the big breakout. Silver could go nuts to the upside. Added more gold on Friday. My intention is to get bigger.
As for the market as a whole the bulls remain in control for the moment. Wait until the volume returns in January and we'll get a definitive direction one way or the other. The SPX and RUT sit at or near key levels.
We could go higher from here. I hate to say it but it could happen. It wouldn't take much to break the bears now. We are teetering. I'm ever so slightly net short. The financials could bounce and that is the key. Need to be more selective in shorting those names.
The consensus however now anticipates a January swoon. Financials get hammered again. If we get that scenario this market will break and it will be time to press your bets on the short side. The point is to have a plan for either scenario. Take what the market gives you and swim with the tide whenever possible.
Regardless of the near term machinations next year will be very interesting. Of that I'm certain.
There are more longs on the watchlist lately. Oil names. Gold. Which by the way is breaking out of it's consolidation and awaiting the confirmation of new highs. Silver should also be watched closely for the big breakout. Silver could go nuts to the upside. Added more gold on Friday. My intention is to get bigger.
As for the market as a whole the bulls remain in control for the moment. Wait until the volume returns in January and we'll get a definitive direction one way or the other. The SPX and RUT sit at or near key levels.
We could go higher from here. I hate to say it but it could happen. It wouldn't take much to break the bears now. We are teetering. I'm ever so slightly net short. The financials could bounce and that is the key. Need to be more selective in shorting those names.
The consensus however now anticipates a January swoon. Financials get hammered again. If we get that scenario this market will break and it will be time to press your bets on the short side. The point is to have a plan for either scenario. Take what the market gives you and swim with the tide whenever possible.
Regardless of the near term machinations next year will be very interesting. Of that I'm certain.
Monday, December 24, 2007
BAH HUMBUG
Friday I took multiple punches to the groin. It's important to remember that even if we get a bear market and the right side to play is the short side, when the bounce comes you had better respect it because it's likely to be violent. Caught net short Friday morning I did not respect the bounce. Instead of moving my feet I stood still on the tracks and got run over. A mistake for sure that has cost me a good deal of my monthly profit. Not acceptable. I do not like to lose.
It does you no good to fall in love with your positions. If you are getting hurt you need to move your feet. Period. Rule Number One: Control Your Losses. Obey this rule above all others. Close the damn position. Take your money and run when necessary. Any position closed can be re-opened under different circumstances. I've lost more money than I count being afraid of "missing the move". Screw that. Live to fight another day.
Five trading days left. I intend to preserve my profits (and keep my longest ever winning streak alive) if I have to close every single position I have. Period. No room for stubbornness- certainly a fault of mine.
It does you no good to fall in love with your positions. If you are getting hurt you need to move your feet. Period. Rule Number One: Control Your Losses. Obey this rule above all others. Close the damn position. Take your money and run when necessary. Any position closed can be re-opened under different circumstances. I've lost more money than I count being afraid of "missing the move". Screw that. Live to fight another day.
Five trading days left. I intend to preserve my profits (and keep my longest ever winning streak alive) if I have to close every single position I have. Period. No room for stubbornness- certainly a fault of mine.
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