Thursday, June 11, 2009

Quicknote (increased exposure long)

All noise aside, action remains mostly favorable and the next potential catalyst hits now at the top of the hour. I've been increasing long-side exposure further; adding to longs and covering anything short. I would not be surprised to see a rush now to Dow 9k.

That's not a call, just an observation. A rally in equities at the conclusion of a big week of Treasury auctions is not unusual and internals are leaning mostly firm ahead of this 30-yr. result; and this market has resisted selling while leadership has rocked.

I have a large number of names long (too many, arguably). As such if I get caught on the wrong side today I'll look to hedge quickly by shorting the weakest major index on the day (NDX at this point).

Re CYOU: the stock lauched about 11% higher within a few hours yesterday (that trade made my day, to say the least). The group is lagging today, however and CYOU remains extended. I don't have a plan to re-enter this session (at this point) and I am looking at this now with 1-2 day horizons when/if I do; until there is a bit of a consolidation (or until it sours).

When you can bag 10% in a few hours on a hot-money darling, the environment for stocks is not all that bad. Snort!

Blah blah - damn treasury bonds about to rock my world - Cyou later...

Total Position: 100% net-long, 53% invested

Currently Long (according to size): ARST (reports tonight, increased today to 6.6%), TQNT (5.5%), WFT (5%), SWN (4.8%), RAX (4.7%), ASIA (4.6%), LFT (increased today, 4.4%), MRVL (new today, 3.7%), PEET (3.7%), SNDA (3.3%), AU (3.1%), JDSU (2.1%), FNSR (reports tonight, 2%)

Currently Short (according to size): NA

Futures Accounts: 20% Long Russell 2k Sept, 525.05 ave.

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