Monday, May 18, 2009

Quick Update on Position

While India is generally not a major driver for our markets, it was disconcerting to wake up net-short and see that market up 17% following election news. India traded for something like 40 seconds before halting for the day.

I'm not getting destroyed (down 1.25% at this writing), but given the resumed murky action I am now getting smaller. Shorts in general are questionable at the moment, yet the long-side still leaves much to be desired. On the day the tape is very firm, though not extreme, while volume on the rally is light, declining from Friday's level.


Given the mixed paint I'm taking a shoot-first approach at the moment, culling out any position for almost any reason which calls that play into question. Details are posting via Twitt.

I will now post the updated eligible-shorts list tonight, although I will work to get it out sooner if the rally stalls-out. Keep that breadth baited - you'll get it before it's too late.

Total Position: 1.10-to-1 net short (plays 1.45-to-1 net short considering leverage), 50% invested

Currently Long (according to size): CYOU (6.2%), SNDA (5.9%), WNR (5.2%), DRI (3.7%), PEET (2.8%)

Currently Short (according to size):
TWM-long (reduced to 5.2%; Russell2k Dbl-short), STRA (5.0%), AIPC (4.4%), BKE (3.5%), USB (reduced to 3.2%), SRS-long (3.0%; US Real Est. Dbl-short), CNO (1.9%)
(Note: inverse-ETFs TWM and SRS represent being dbl-short the respective indices)

Futures Accounts: No Current Position
-Covered SPX Jun Wednesday 880.75, from 912.75
-Covered Jun Euro today 1.3485, from 1.3585

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