Saturday, October 31, 2009

Quicknote on Portfoilio (a layer of protection)


Sitting tight with 3 (striped) baby-longs here as I head out of the country for the week. Technically, accounts are slightly net-short, but 11% of my world will see the woodshed if leadership again leads us lower (my longs will hurt more than what I have hedged-off in that case, due to the higher beta).

I have stop-instructions to increase TWM to 10% (now 7.3), if it trades 32.62 (which will further neutralize potential bite(s)). I have stops well-lower to sell existing TWM, a stop which will rise as the days progress.

This, until I am back the following week, or I am sure I can trade instead of sleep while in Beijing.

Again, I am not interested in being short (at this point) while out of town. Although you smell the beginning of the end for the market (yet again) and the wily Piper's gin-soaked croons now hold sufficient bulltard herds in his wake, the intermediate-term trend for the moment remains up (even if barely) and I cannot fight that from in the dark.

I'm largely on the sidelines here while you guys scoop the spoils.

Finally, I am working a solution to circumvent the Blogger, Twitter, Big Brother block in China. No guarantees though I will be chiming-in at this point.

-Total Position: ~1.28-to-1 net-short
, considering levered (2x's) TWM hedge
-18.5% invested
overall
-Pure-longs = 11%


Currently Long (according to size): DGW (4.4%), ASIA (3.8%), RINO (3.1%)

Currently Short (according to size):
-TWM-long (Russell 2k Dbl-short, 7.3%)
(Note: inverse-ETF TWM represents being dbl-short the respective index).

Futures Accounts: no current position

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