Truly brutal
You know it is bad when you are near 40% cash, 15% short and still take a 5% hit.
S&P 840 was Friday's low - I thought we'd retest it 'at some time' but did not expect it 48 hours after the biggest up day in history?
This market simply saps all hope.
EDIT 4:30 PM - here is how we did today; I usually don't post daily results but with these massive moves up and down we'll post as many as possible. Well we enjoyed a brief stay back over $9.00 yesterday. Brief being the key word. The lack of short ETF exposure was a negative today, despite a very high cash position. Thankfully we took a ton of profits from that rally - beating the market by 4% never felt this bad.
5 comments:
Trader Mark - Do you think Volkswagen warrants a second look? It is in a volatile position with an enormous increase in the last month, a deal that hasnt gone through yet with Porsche, and its relationship with hedge funds. Do you think these are signs of a shorting opportunity?
Atticum... You are hilarious!!
Pankaj, what is the joke? I missed it
Atticum,
I've never looked at VW other than that one article
Not sure if it even trades in the US - I believe currently 9 out of 10 days you can throw a dart and be a successful short. But I don't know much about the whole situation - I was just relaying a story about how hedge funds all being on the same side of a trade caused a major dislocation.
Whew! what a day.
I found it hilarious that Atticum's comment was in response to your very serious post in regards to the market situation and all, where the fundamentals and everything is clearly out of the window, and Atticum wants to know about shorting opportunity in a particular stock! ;)..
This will be just a wild guess but the next leg down will be true panic selling. Previous selling, in my opinion, has been more about mass liquidation and with the Fed there to backstop things, well you could always count on a bounce to get you out. Now what can the Fed/ Treasury do? There doesn't seem to be much more and if they do something - anything - it will clearly not have much ooomph; recent interventions and the biggest and most desparate interventions all have faded by a several days. So my point is with out the Fed/ Treasury back stop I would look for real panic selling and possibly a bottom after that. Today's action seem to have a real panic feel to it. Just my guess....
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