Thursday, February 26, 2009

Bull Bait

It's 90 minutes into the session and the market internals remain strong; led by Financial's.

I blew-out the SKF early and was eventually stopped-out on SDS. However, I am not yet stopped on SRS. Unlike other inverse ETF's, SRS is trading above the opening price level and so far held it's 7am low (reached when the market surged en-mass on the release of new homes data).

I remain in damage-control mode and I have my stop in place for SRS, but that is basically just a hedge against longs at this point. I am currently market neutral and very lite.
[blow-by-blow action is available on the Tweedfeed >>>]

But while I am mostly side-lined I will say this - today is a perfect day to identify wounded pup seals for further future attacks, especially in the Financials. The Financial's are re-pricing potentialities right now and you can see certain names like STI suggesting post stress-test survival. At the same time a name like SIVB is really having trouble getting off the beach and into safe waters.

I will compile a fresh list of wounded uglies today. I want to be ready as soon as the market stalls-out (whenever that occurs). If the market surprises to the upside, my methodology will keep me out of action or else long, depending.

Thus, in the meantime, I'm eating sheaths of karibu jerky (I have 3 or 4 of these beasts hanging upside-down drying-out in my living room), sharpening harpoon daggers, watching markets and starting kill-lists for future bloodshed.

Currently Short (according to size): SRS-long (Real-Estate Dbl-short), AEM (reduced 1/3rd today at 46.80)
(Note: above long inverse-ETF SRS represent being dbl-short respective index)

Currenty long (according to size): ATHN (reports tonight), SEPR

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