Tuesday, May 18, 2010

Love the Bombs

The market is still half-empty at best here, very likely more than that. Just to be clear - since my last update (nearly years ago now) had me positioned long with the bounce.

We're in the midst of a correction and I'm not young enough to fight with that animal if it's not rising already. Market-neutral is about as long as I'm comfortable with for now.

I'm looking to attack on days where blood tints water (as long as I'm not on flights without internet, as was the case unfortunately Friday). I missed a decent short opp., Friday, but at least had the means to neutralize; out of reach from sharks teeth.

Blood is in the water, IMO, when market breadth is >5-1 negative (far more lately has been the case on the severe down-days). If you want to fight the trend on those days, give me the other side of your tickets. These are the sessions I'm looking to push hard, throughout the day, and then back-off again heading into the close.

Easy game.

Total Position: Currently ~1.36-to-1 net-short; 50% invested

Note: After a bit of math I have re-weighted the inverse ETFs below to 1.65 x's weight, from 1.5. This, as the list of long holdings has been lower-beta of late and as a result the short-ETFs are creating greater impact than previously.

Currently Long (according to size): EWY-S.Korea (6.4%); EWS-Singapore (5.5%); TGT (reports tomorrow AM, 5.3%); CISG (5.0%); SBUX (5.0%); ITMN (0.41%)

Currently Short: SDS-long (SP500 Index Dbl-short, 9.4%); SKF-long (Financial Index Dbl-short, 8.0%); EPV-long (Europe Dbl-short, 5.5%)

Futures: no current position

Twittspit for details

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