Some of the names I want to short for fundamental reasons are perking up on the latest round of hope so I'd like to soon transition into names I don't like for fundamental reasons over these names - but I wanted a hedge in the meantime.
One of the 3 names I have is Netflix (NFLX) and I still like the "gap" fill but I still have a small profit on this name so I am going to lock it in, with all the "news" risk we have in the next few days. Translated: I am sort of chickening out because I fear Washington D.C. putting the hammer on me. Specific to Netflix I still like the set up but would like to jump back in once the stock broke back below $35....
We started this with a 3.3% stake at $37 [Feb 2: Bookkeeping-Short Netflix]; I cut a few portions out last week as the stock went sideways for small profit, and the rest (1.9%) is going out here at $36.10s for a small profit.Covered a bit of Amazon.com (AMZN) and Geron (GERN) this morning as well, as both are "happy" looking stocks (stronger than NFLX) just in case the market takes off for the 3rd time on the exact same news.
Short Amazon.com, Geron in fund; no personal position
3 comments:
Hi TM: Back from holiday and it appears that event risk is now a daily occurrence. It seems that the Obama administration/ Treasury is in the game of floating a new idea or plan or stimulus everyday now. Take the "bad bank" idea; that was just an idea that the masses/ media/ critics shot down, but it was good for a very nice "pop" in the markets that ran over more shorts.
Today's new plan is a postponement of an announcement of the new plan so Treasury can make the old, new plan a newer, better plan. Got it?
The obvious question becomes: why even bother to bet against the market? If you are underwater in a long position, all you need to do is wait a day or two for more breaking news/ stimulus idea/ bailout package.
What is so funny is why no one ever questions, why the previous 20 or so proclamations/ plans to fix the problem haven't worked. Go figure.
Guy
are humans really any different than lab rats
You keep putting out the same conditions; and the rats constantly act the same.
I have serious doubts about just how advanced we are.... the inner cortex seems prehistoric.
Remember, its not the first 86 plans that will work. As grandma used to say, it is always the 87th!
p.s. what are your thoughts on our favorite economist? Copper.
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