Tuesday, September 01, 2009

Quicknote (hedged some - eyeing otherwise)


The good news - 450 CNBC shouts and counting, that the market correction is under way. Logic dictates downside legs will be limited; we'll see.

The bad news - a rather ugly reversal on good news (again, but worse this time + strong, rising volume), a strengthening dollar (and lower commodity prices), exploding volatility and a perceptible downtrend now in the indices.

While I got whipped a bit today, I am excited that I can now start scaling into newer leadership (ex: SWM) on a slice downward. Not rushing in just yet; but perhaps a little more at the close, depending.

And I've taken on a decent amount now of SRS (Commercial Real Estate Ultrashort), to afford the undertaking.

In a nutshell, still rather lean overall at the moment, but happy to see everyone clearing out when the market has only corrected a few percent.

Total Position: plays roughly 2-to-1 net-long (considering levered SRS); 42% invested

Currently Long (according to size): CTSH (7.4%), RJI (6.3%), CYOU (5.1%), CORE (5.1%), SWM (5%), MRVL (4.4%)

Currently Short (according to size): SRS-long (US Real Est. Dbl-short; (8.2% position)
(Note: inverse-ETF SRS represents being dbl-short the respective index)

Futures Accounts: no position

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