- Mercadolibre (MELI) - flat
- Mosaic (MOS) - a gain
- CF Industries (CF) - a gain
- Foster Wheeler (FWLT) - flat
- Shaw Group (SGR) - at a loss
- Research in Motion (RIMM) - flat
- Mechel (MTL) - a gain
- Trina Solar (TSL) - at a loss
I continue to operate under bear market rules. All rallies get sold even if this is part of a larger rally. I sell incrementally as we move up.... complete opposite of a bull market where I buy dips and hold for longer periods. I will leave some on the table all the time with this methodology but I do the same in bull markets. Buy and hold is dead to me at this point. So I continue to try to 'trade' within positions, when the market has it's Kool Aid moments, and buy in it's panic striken moments.
If I had a larger coal stake I'd be taking more off the table but I am going to stand pat. I am hoping for some correction in that space so I can build that allocation over time. EDIT: I did take some Consol Energy (CNX) off the table as well.
I am adding to my 'safety net' Powershares DB Agriculture Fund (DBA) since it corrected another 0.5%. :)
I am not adding to my sizeable short exposure at this time because as we see today even something quite innocent as a Buffet comment can move these "loser" groups a lot. So I am just keeping the extra dough in cash. Certainly at any point you can have a 5-7% move up within any bear market as we saw a few weeks ago. This "news" today is quite funny: essentially Buffet told the bond insurers: I want the best part of your business; the business you were founded on - the municipal bond insurance business. This is a business with almost no defaults and the insurance (while low margin) is just about the safest business in the world. It's a cash cow and perfect business for a guy like Buffet. So Buffet "generously" is offering to take it off the hands of the bond insurers, leaving the bond insurers with the junk business. What a deal :). Now pathetically, the municipal bond market is not the problem, yet the equity market is loving every minute of this "bailout'... even though today's news essentially means nothing since it has nothing to do with the at risk part of the market. But logic and the market never really coincide much in the near term. But this is the risk of holding any position betting against financials - any "bailouts" or "solutions", however superficial are seen as major Kool Aid.
Long all names mentioned in fund; long Mosaic, Foster Wheeler, CF Industries, Powershare DB Agriculture Fund in personal account
