Monday, July 27, 2009
CYOU (wouldn't want to be you)
While a pullback may be in the cards short term, or not, it is clear the market is still behaving well...for now.
That may seem a fairly useless statement, but I've little reason to pretend to know more than the most basic truths about this business. The older I get (I am ancient you know) the less I care what I think about any tomorrow. I prefer being 1-step behind, and simply responding.
Ignorance is under-rated.
I'm still out of the country, but looking to swing-trade any reasonable set-ups (long) this week; from a variety of leadership groups. Clearly it is the Chinese growth names which remain the predominate leaders; and within that spectrum it is the Internet Content names which are hottest; and within that group it is the video gaming providers who've cornered their market (see illustration above).
That means watching the action on CYOU today (reported this AM) and neighbors from the group (NTES, PWRD and SNDA), will be a highlight. CYOU is a volatile leader and before last week it really had never done anything in its young history to concern me. But we saw major-volume selling last week and I am out for now. At the same time I am keen to get involved again if it digests today's report well (and the market and the group remain live, etc.).
Elsewhere, I'm going to try and trade out of BIDU on the up-open here (if it can jack more than a few points), but I see no reason no to then get back aboard on the first reasonable set-up. The price-target was raised there today by Citigroup, which may make for a crafty short-term exit on a gap-up, following the huge day from BIDU on Friday.
Total Position: 100% net-long, 13% invested
Currently Long (according to size): BIDU (7.2%), NTAP (5.8%)
Currently Short (according to size): no current position
Futures Accounts: no current position