Quiet Day

In this shortened day I did not do much.

Took some more profits off that crazy Solarfun (SOLF) up another 15% after a huge spike Friday. I am now down to almost nothing in this position, but with the mania in the sector there is no reason it could not be a $40 stock by end of week (currently $33) but it has now turned into pure speculation. The solar sector is again reaching a point (aside from LDK Solar (LDK) and Trina Solar (TSL)) where valuations are getting hard to justify. But speculators don't care about valuations.

I added a bit to two positions which recovered their 50 day moving averages, FTI Consulting (FCN) <--looks ready to breakout, and Gafisa (GFA). (Gafisa is at a critical juncture, it could either break down back below its 50 day moving average or break out to make a run - hard to tell)

I also added to some of my Ultrashort positions late in the day. I don't want to go overboard because in a very thinly traded market, which we will have this week, the market is very hard to assess.

My overall plan now is to snip away at some of the larger winning positions into rally, and increase some short exposure. Despite my love for all things fertilizer some of these charts are getting might extended so I might need to start snipping away if the rally continues in the latter part of the week. I am already down to a 6% allocation and I don't want to go much lower but some of the moves of late have been quite powerful and with a market I don't trust overall I want to lock in some gains.

The only reason to change this approach is if the market takes off to new all time highs - and then once again we go back to drinking kool aid and pretending the coming economic tsunami is just a figment of our imagination. But until I see otherwise I will simply be going down the path outlined above.

As an aside, I really like what I am seeing from Apple (AAPL)... I try not to mention this name to often because I could write a good thing each and every day about this company and the overall story is not a mystery or ground breaking stuff. The stock just broke to an all time high and we are about to his $200 in this name.

Have a good Christmas and we'll see you Wednesday.

Long all names above in fund; long LDK Solar in personal account