Bookkeeping: Adding Back Fuel Systems Solutions (FSYS) Sold Yesterday

This is quite a sad market. Friday we sold Massey Energy (MEE) post earnings pop in the $81s saying it would probably give up all it's gains. Within 2 sessions it fell to mid $60s. Yesterday morning I sold down a position in Fuel Systems Solutions (FSYS) in the lower to mid $39s on the "Cramer followers" pop.... by the end of the day it was down in the $36 and gave back almost the entire 10% gain. This has simply been the pattern - gains are not sustained. We can't do this over and over over 55 long positions in a mutual fund environment, but we are doing it here and there selectively.

I am out of pocket most of the day today so I am simply going to place a market order to get back the Fuel Systems Solutions position I sold yesterday at whatever the opening price is today. There is a press release out saying earnings will be out this Thursday after the market close. I do expect good things, and normally do not increase positions ahead of earnings, but will do so in selected cases (i.e. we did it in Massey Energy for a quick gain). And if it pops? Well, you see what this market does to stocks that pop that are not in healthcare. You have to sell the pop knowing there is a great probability your gain will be stolen from you in short order. It is quite sad what this market has become - it's quite broken.

On a larger theme, the S&P 500 continues to break down slowly - we have the sell offs and then a rebound, selloffs and then a rebound, but its stair stepping downward. I do like some of the pricing now in fertilizer and coal and if I check in later today and see prices down in similar fashion to yesterday we'll begin adding. The fundamentals remain solid but fundamentals mean nothing as hedge funds are the marginal customer and when they want out of the sector, in their locust behavior, we will be smashed trying to stand in their way. So we'll make some buys, knowing we won't catch the bottom. Still looking for crude $110 which is a 50% retracement of the August 07 to July 08 run.

I'll edit this post with the price I end up paying for the new stock the next time I check in - we will have a greater than 3% stake post purchase.

Long Massey Energy, Fuel Systems Solutions in fund; long Fuel Systems Solutions in personal account