Other Transactions Today

Thus far the S&P500 is holding that 1500 level on each dip. Sort of a battleground area. I continue to look at 1490 as a key level. A break there and you have to go very negative short term. No idea where the market will go this afternoon, but some opportunities are developing so I decided to start putting the free cash to work. Also let me say I am blown away by the strength in large cap tech, I think there just appears to be a collusion going on in the Baidu's of the world - if you don't sell, I won't sell, and then it will never go down! We all get rich! Deal? Why didn't we think of this earlier? The strength in Core Laboratories (CLB) is also amazing.

1. I flipped out some more of my Ultrashort Financials (SKF) and Ultrashort Real Estate (SRS) this morning. These ETFs are up 12-14% in just 2 sessions, so I want to take some off the table. Also, rumors of Chuck Prince being fired this weekend (with a huge compensation package I am sure) are making the rounds so that could be a psychological lift for the group, although it does NOTHING for the pathetic business. This group has suffered very heavily in a short amount of time, so perhaps we get a life early next week (just a new opportunity to reshort on any spikes in my opinion)
2. Bought some more agriculture exposure: CF Industries (CF) and CNH Global (CNH) on their morning dips. I mentioned $79-$80 as a support area for CF Industries when it reversed after earnings and lo and behold here we are in a very short time span. (mid $90s on Tuesday!) CNH Global was actually up 3% this morning before reversing, so I took some at $62.
3. I mentioned yesterday $45 looks like the floor on the Crocs (CROX) and here we are. I layered in some yesterday and layered in more today at $45. I'd be surprised to see meaningful downside from here short of a market meltdown, but do you ever really know. I did a lot of reading on Crocs to reconfirm my thoughts and I like the story; this seems like an epic overreaction, very similar to what Hansen Natural (HANS) went through a few quarters back when it disappointed the herd of lemmings, and the stock was demolished in calls of "growth is over" and "fad fad fad". The stock has since put on a huge move. Honestly if Crocs had about $5M more in revenue and guided $10M higher none of this would of happened. And we lose approaching $3 Billion in value for $5 to $10M on revenue? Silly.
4. I started rebuilding my Ciena (CIEN) position which had a huge run as the #1 position for the fund in late September/early October. The stock has digested that massive move, pulled back and created a much nicer entry point.
5. I sold that spinoff company from coal stock Peabody Energy (BTU); Patriot Coal (PCX) - due to my 400 shares of Peabody I got 40 shares of Patriot Coal - so it was a small offering, which I booted and instead bought more Peabody Energy (BTU)
6. I had cut back my New Oriental Education (EDU) position on Monday after the stock ramped 18% in 3 sessions - I sold at $90 since the stock was nowhere near any support; the stock peaked at $92, and I got that position (and more) back at $80 today as it fell near to its 20 day moving average. Thank you market. I have very little direct Chinese exposure but this is 1 name I really like (although its pricey as heck) - but finding monopolies in an exploding market is going to cost you.

So with these buys and sells, cash is down to $115K or just around 10% of fund; down from 16% entering the day. I like these entry points, and like the companies - I believe at this point the chance for lower prices in these names will be more due to a market swoon rather than anything to do with the actual companies. I probably will keep most of the last 10% of cash in case we get to a more panicked selloff stage in the upcoming days.

Long all names in fund; long Crocs in personal account