Tuesday, February 10, 2009

Hail the Size of Canned Hams

Just a quick update, in between sell tickets - I'm back to net-short here after hanging out in market neutral territory lately and at times getting hit on both sides; not so today.

The tape is ugly and there is no reason to think the market won't be closing on the lows today (put-to-call numbers are well too low and breadth is running about 5-1 negative; not exactly bull butter).

The question of tomorrow now becomes important. If we're driving to lower-lows tomorrow (as opposed to a 1-day-wonder root-rout) I am leaning then on the likelihood this will develop all the way to lower-lows in the indices; we'll see.

Current Shorts (according to size): SKF-long (Financials Ultrashort), SRS-long (Commercial Real Estate Ultrashort), TWM-long (Russell 2000 Ultrashort), MAT
(Note: the SKF and SRS cannot be held for any great length as their inverse-short formulas cause severe bleeding relative to the underlying indices - 1-3 day trades here only)
Current longs (according to size): AVAV, ATHN, CEPH

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