Thursday, September 24, 2009

Quicknote on position

I have a healthy amount of respect for healthy respect.

Subsequently I'm pulling in further today, reducing exposure and positioned now slightly net-short. The net-short stance is for reasons of 1.) Market pressure is accelerating, leadership is getting hit harder now than the major averages and internals on the day are not suggesting much possibility for great improvement here and now (as in today). And 2.) Being a little a little short here gives me a better ability to buy leadership at new entry points; perhaps lower, but not necessarily.

But my main ambition at present is to get smaller and see what develops; see if this is more of a healthy pullback within a larger bull market...or something worse.

I aim to remain 1-step behind this market; which has served well the last couple of years, or since the market's highs.

-Total Position: Aprox. 1.25-to-1 net-short, considering levered SKF and under-levered UUP hedges.
-36% invested
-Pure-longs = 16%

Currently Long (according to size): SNDA (5.2%), CYOU (4.1%), CFSG (3.6%), ULTA (3.3%)

Currently Short (according to size):
-UUP-long (12.1%); current inverse correlation with equity mkts defines this as an equity hedge
-SKF-long (US Financials Dbl-short; (8.1% position)
(Note: inverse-ETFs SKF and TWM represents being dbl-short their respective index).

Futures Accounts: no position

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