Back to Work

Welcome to the new year folks. Tomorrow marks the first trading day of the year. I go in net short. The markets seem to be coiling up here and there will be a decisive break sometime early in 08. Considering the backdrop the break should be lower but that's not the business of the day.

Short term we get Fed minutes on Wednesday and then it's employment report Friday. Not too concerned about the short term market action and will look for opportunities in individual names long and short. The watchlist has mostly short candidates but my favorite ideas are balanced between the two.

The plan is to remain somewhat defensive. Not looking to give back last year's profits. I'm heavily committed now but ideally can scale back to accrue some fresh powder. 08 will provide numerous opportunities and there is no reason to press my bets in January. As always I will "stay in the game".

My current analogy for trading is guerrilla warfare. The idea is to attack the market where it is most vulnerable and to risk as little as possible.