Tuesday, December 22, 2009

Quicknote on Action (chinese growth suspect)

The market indeed rocked higher, so I got that right.

Or wrong.

Chinese growth, where I accumulated most of my line, is acting poorly this week. Shanghai is at an almost two month low, down another 2.3% last night. So while US equities continue (so far) to fade the stronger Dollar and have worked back to highs, leadership growth in China is behaving a bit sick; especially in terms of relative strength.

Given that this has been the leadership in the market, it commands some attention. We might see strength in the China names between now and year end (cannot count out the strong seasonal period we're entering, unless/until it becomes clear the market is selling-off in spite of the calendar). But without renewed strength in the higher-growth Chinese plays listed in the US, I wont remain bullish for too long; China or elsewhere.

Total Position: ~3.5-to-1 net-long; 34% invested; Pure longs = 29%

Currently Long
(according to size): CML (reduced today, 5.9%), AMZN (5.4%), HMIN (4.9%), CISG (4.1%), RINO (3.7%), HRBN (reduced today, 3%), ULTA (2.2%)

Currently Short (according to size): TWM-long (R2k Dbl-short, reduced today 5.1%)
(Note: inverse-ETF TWM represents being dbl-short the respective index)

Futures Accounts:
No current position (see the Twittspitt for details)


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