Friday, March 13, 2009

Bookkeeping: Some Profit Taking

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I remain bullish as long as we hold S&P 741, for a move to S&P 780 - that said we've come a long way in a very short period of time so I am willing to take some profits here and see if we consolidate a bit. I've essentially removed all my "bullish" ETF trades - the Ultrashorts I was shorting and the long ETFs I had held. These have been my dominant investment (I use that word loosely) the past few weeks when the market is making such hectic and extreme swings. (I don't break out the ETF trading piece by piece because for me it is all hedging techniques rather than any sort of investing)

In addition I've taken some profits today in individual names
  1. Almost Family (AFAM)
  2. Fidelity National Financial (FNF)
  3. Myriad Genetics (MYGN)
  4. PIMCO Strategic Global Government (RCS)
  5. Lennar (LEN) <--- this was a quick trade entered yesterday morn and now back out

At this time, the "woosh" trade has now been done in my opinion (in this case woosh up) - that is the move that you can make quick bucks using the ETFs, so from here I expect more of a grind. I'm willing to be a buyer on pullbacks to S&P 741 with anticipation it holds. If it does not act as a support, than I'll exit out of long positions and turn back to the dark side.

But for now I expect a lot of "choppy" trading and I'd like to just rely on individual stocks instead of ETFs. Cash is at a high level and I am using that as my buffer as opposed to shorting at this time. Willing to just sit and observe for a while now and let the market do its own thing. I continue to shake my head at how bad the macro news is out there in the world, and now China is making rumblings about how they are disapproving of how we are spending money like a teenage girl at a mall with daddy's credit card. These are extremely interesting times from an economic/intellectual level - living history ... and the U.S. is going to press its bets on how far it can press the world to continue to subsidize its free spending ways.

Long all names mentioned in fund; long none in personal account


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