Wednesday, April 15, 2009
Writing fast, as I am back to being a mutual fund again; too many children to get across the intersection.
I was able to add long in several places. The largest trade is indeed GS long, but it set-up backwards (opening higher in a down market and then trading down to the 200-day).
Anyway I'm bloated with names again, though so far only 65% invested (including the remaining SDS-hedge). I will add further if the action remains constructive (adding to existing winning positions especially). I still want NFLX back, but am trying to hold out for ~45.50.
How the market responds from here will be important (as always), but the key for now is that selling was constructive, the pullback was relatively mild (although we did mange the first distribution day for the averages in > 2 weeks) and leading stocks remain strong on the charts.
AND the larger trend remains up. So whether or not we will bounce here, only to mark an important double top (new bear argument out there today), the point of the present is that there is no top. It seems to me the more present idea was to buy leadership on the pullback, but that's my stupid-lucky talking.
Fortunately, I remain an idiot. You'll get me yet Mr. cuddly.
I have stops, for GS certainly but for others and hedge-increases as well. Forget conveying that here and now, but I have been keeping my action up-to-date live via Twitter, so look there if you care to follow changes/adjustments. As always, don't do what I do. Bears will tell you I am going to blow up any minute - they may be right (certainly by the time you follow the trade I'm more or less doomed anyway).
Total Position: >10-to-1 net long, 65% invested
(Note: SDS hedge is leveraged, accts are playing roughly 6-1 net long at moment)
Currently Long (according to size): GS, ARST, RIMM, MYGN, WNR, RJI, DRI, PMCS, MNRO, BKE, FORM, BBY, CYOU, CHKP
Currently Short (according to size): SDS-long (SP500 Dbl-short)
(Note: inverse-ETF SDS represents being dbl-short the SP500)