Thursday, February 26, 2009

Mode de Damage Control

Here is the quick skinny on damage control, for getting caught short today...

Negative jobless claims did not affect strength in the pre-mkt strength and the Financial's are the strongest. I'll be letting go of the SKF soonest, unless the market opens-higher and then quickly turns-tail lower. From there, I will try to survive the SDS and SRS, but will let those go as well, within the first 90 minutes, unless the market is trading below the opening levels. That would then leave me lite and holding a smallish long position, while lying in wait.

As I said yesterday (somewhere), I can fight like mad for a day, but the next day I have to back-off (learned this the hard way, naturally). I'm not going to fight the chop and, at this writing I'm not confident that we won't soon be blasting through to lower-lows; so the net-net obvious action is to move aside and sharpen spears while waiting for better.

If we open at the highs today and begin moving lower, then I'll know I'm in the right place and I'll instead just be looking to add, depending. The adage I love - if your head should be handed to you and it is not - then you are probably in the right place.

Right now though, it appears my head is plattered.

Good luck today.

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