Thursday, December 27, 2007


The market has started off lower again today, but this time with a little more vigor.

The Russell 2000, NYSE, S&P 500, Nasdaq and the Dow are all trading below their yesterday lows; something we haven't seen in several sessions now (the NDX is holding out above that level so far today). Market breadth is clearly negative. Volume is rising from yesterday, but not heavy (not surprising given the holiday nature of this week).

I'm not bailing out in a panic ahead of schedule just yet (I'm still hoping to give this position an opportunity to get to the last trading day of the year on Monday). But I am reducing-overall now and if action gets worse I will start throwing relative amounts of babies out with the bath water.

Or I might just hedge, depending on how well the names are acting relative to the market overall.

I sold the new JRJC at 25.22. No need for further nickels collected in front of a steam roller, if you know what I mean. Stick with the winners now that the market is checking.

I actually added to TNH at 142.50 as that was breaking-out earlier. I may end up unloading new shares, adding more or bailing on this position altogether; depending on how it handles the rest of the day. It is well off the highs now.

Current Position (by size): GOOG, ANSS, AAPL, ONXX, MR, JASO, LOGI, TNH, SLT, FWLT, CAF, YGE, GENZ, PWRD

[CAF is actually up 2.5% today - there was a dividend payout and the chart is not yet adjusted. I still like being long Shanghai for now]

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