Friday, August 28, 2009

Sun and Shun (more churn than earn)

Bulls and bears can now grumble alike, since the market cannot gain traction in either direction. Today is disappointing in the rally. Breadth on the Nasdaq is clearly negative, on rising volume, coincident with an index which gapped-up to new highs (distributive, or churning action and negative). News is plentiful and positive today and early prices cannot seem to stick. Sentiment has shifted from unison warnings about a correction to a mixture now of that but also jubilant praise over yesterday's reversal and now Intel's upped revenue guidance; and what it all says about a recovery.

Tough to smile when you see all of this and gin-soaked Larry Kudlow is in your ear at the same time, jammering about the brighter than bright future being now universally proven. I have to leave the room to keep from selling more shares.

I'm not hedged, but I did cut back exposure (fortunately in the opening minutes and after-mkt last night - Twittspit feed on the right is the source here for live trade-updates). At this point I'm happy if we can manage a real pullback. I'd like to shift into some newer leaders for the final quarter, assuming we don't break down in greater than normal corrective fashion, and the entry points right here are not so desirable.

Total Position: 100% net-long, 52% invested

Currently Long (according to size): CTSH (7.6%), BIDU (6.9%), RJI (6.6%), STEC (5.4%), CORE (5.3%), CPSL (5.3%), CSIQ (5%), CNQR (5%), MRVL (4.6%; reduced by half last night)

Currently Short (according to size):
no position

Futures Accounts: no position

No comments: