Updated Position (ditto december lights)

While I did engage in some sloppy trading this week, I'm back on track now today. Similar to the market itself.

I've been reluctant to believe we'll see a typically ditto December (seasonality has been largely upside-down this year and a chorusing clamor in recent weeks has had my guard on high). But December is here and it's snowing out of the gate thus far; if you know what I mean.

I don't need to think, really. As long as the market moves continue to exhibit traction, I prefer to keep a half-step behind instead. As the market began to slide (and especially as the majority of leadership began acting poorly last week) I shifted gradually towards market neutral and eventually net-short by yesterday's close. Today's bang-up comes on strong, rising-volume though and positive internals are severe (implying the major indices will close at or near highs of the session).

I'm holding several shorts at the moment still. If we're rallying again tomorrow I'll be reducing that side of my line further (I let go TWM-hedges in the opening minutes today). In the meantime I haven't gotten too excessive (currently 2.54-1 net-long).

The first day of December is seasonally strong, but standard year-end seasonal strength does not find it's better gear typically until around the 20th of the month. Again, I don't want to write any scripts, but to respond to the market's actual and present nature. If a downtrend resumes, I won't put my head on any Xmas turkey chopping blocks; not for very long anyway.

As of this writing - the corrective action may be over.

Follow Centrifugal to fade trades in real time

Total Position: Currently 2.54-to-1 net-long, 95% invested

Currently Long (according to size): CRM (8.4%); NOV (7.3%); SBUX (7%); LVS (Reloaded today, 6.4%); ULTA (7.4%); COH (6%); OVTI (increasing to 6%); WBC (added today, 6%); ROSE (5.3%); FTNT (added today, 5.1%); RVBD (3.9%)

Currently Short: TNP (7.1%); DSX (7.1%); ERTS (6.3%); DISH (6.2%)

Futures: no current position

Pom Payday

Arrived yesterday in Naples and heading to Pompeii now for the day (Vesuvio tomorrow). Overnight futures are down slightly but leadership has remained quite game at the same time that the overall market lumbers in a mild uptrend (my favorite type of action for simply holding onto to winning positions).

As long as this continues I can keep with the plan of holding into the July 4th holiday seasonal strength; with the idea of selling names on Thursday (2nd) [edited] and then early Monday (6th). Given the nature of the recent action (leadership growth behaving very strong under the otherwise quiet surface) there exists a reasonable chance we'll see a strong advance-day for the overall market somewhere in this time frame. If so, I may reduce on strength sooner, in the final 30 minutes of that session.

There are some hurdles, as always, and if we stumble to any significant degree I'll adjust the game-plan and lighten sooner. Potential game-changers include 1.) the potential that the end of the quarter Tuesday will mark short-term highs in leadership stocks; 2.) the monthly employment report due Thursday [edited]; and 3.) anything else which may develop AND strikes a chord in the market.

A final thing I have to be wary of is the possibility of failed breakouts turning into selling routs. Several of my positions now are either breaking-out or poised for a breakout. I live for such problems, but with life in the fast lane eyes must keep alert. If break-outs like RAX and PAR stall and turn below break-out pivot points, I'll let them go ahead of schedule. If SNDA breaks to a new high now, I will look to sell right into it (since the too-far-too-fast advance means the likelihood it will need further consolidation); while if CYOU breaks-out I will try to hang-in for the ride until Friday or Monday (as this one is less mature, it remains a beast so far, and almost any upside is possible.

In other words, neither CYOU nor SNDA has a reasonable base to break-out of just now, yet the younger CYOU has a better chance for getting even more disgusting. I've done well earlier in selling-out at the right moment and then hopping back on for more after pulling back, but on this particular juncture, given the calendar, the general trend and the fact that it has no business now being back to new highs again after such a brief consolidation, why should I get logical and conservative when this name acts like it still wants to surprise?

I expect few entries again this week, while I'm exploring past and future Volcanoes and ultimately then heading out into the Mediterranean. My Twitter works well enough for broadcasting changes in my position, but even those may come late now as I will miss chunks of time (though not opens and closes) and I'll be dealing largely with limit and stop orders intraday.

I'm off.

Total Position: 100% long, 53% invested

Currently Long (according to size): CYOU (6.1%), ASIA (5.5%), RAX (5.4%), SNDA (4.9%), WFT (4.7%), TQNT (4.2%), ARST (4.2%), NFLX (4%), LFT (3.8%), MRVL (3.5%), PEET (3.5%), PAR (3.3%)

Currently Short (according to size): no current position

Futures Accounts: no current position