Thursday, March 12, 2009

Pressure Point

Taking some body shots here today. I'm more short than long, the market is up and much of my long position is lower instead of higher.

Oh boy - dog food again.

The SP500 is within one strong push of reaching the November low breached at the end of last month (741 area). Volume is running lower today, while sentiment is running quite a bit more positive. I would expect if we're going to continue rallying, then we'll consolidate some around the previous-low levels. And if we're going to stall, then I would expect we'll begin stalling later this session.

That's too much expecting for my taste. In fact I'm just trying to survive this day. If we're strong in the final 90 minutes I'll have to book some lumps and adjust. That's something I'd prefer to avoid, given next week is option expiration week. Op-ex has been the market's worst nightmare and now that hope is alive and well again it could get interesting.

Yeah, yeah, well hope sucks eternal; I'll be blowing out shorts by 2:30 EST if we're not beginning to stall.

Total Position: currently 1.66-to-1 net short, (87% invested)

Currently Long (according to size): AGP, WNR, PMCS, SNDA, HMSY, NFLX, ARST
(note: AGP position is a hedge against HUM short, just for the day)

Currently Short (according to size): HUM, AAPL, BWA, POT, ALV, BAC, V, GTIV, ELOS, ATHN

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