Friday, January 04, 2008

Quick Note

Not getting any prettier out there so far.

The broad market is getting hit hard on rising volume; breadth is significantly negative; new 52-wk lows are expanding to bearish levels again; the Semi's have cracked well beyond new-low territory; the Nasdaq is currently trading below the November low; there are few positives to speak of.

Solars are holding reasonably well. Biotechs and drugs also (GENZ is bucking the tape very nicely), so none of my remaining position is looking terribly bad; no cause for celebration yet, however.

I've shorted a first-tranche of semi CYMI at 34.08; looking to get short others, or else get hedged if we don't see any improvement. I will unload MICC below the 111 low today, if it takes that out. I may let go of FWLT as well, depending. And the potential for serious profit taking to suddenly grip the solars is a real threat. I'm willing to unload JASO and YGE in a hurry if I sense that action; not yet there, however.

[Edit: finished the CYMI position, adding 2nd tranche at 34.21]
[Edit: added TWM (Russell 2000 Ultrashort) at 77.33 as hedge - presently biggest position here; until market firms or until I unload long stocks; whichever becomes more necessary]

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