Bookkeeping: Adding to Some Shorts

Obvious candidates to add to based on charts - some very extreme short squeezes on the sub $10 REITs the past few days - namely Macerich (MAC) today (+20%) and ProLogis (PLD) yesterday (+25%) This let's us reset. If for whatever reason the charts reverse and turn bullish, despite the fundamental story we'll take some losses and cut back - so far every bounce has been an excellent short. MAC - you short at the blue line and cover 2-4 days later for mad money. PLD a little less obvious on levels to short. One day it won't work, but play the pattern until it ends - already about 3 round trips on MAC. Moved both names up to 2% stakes (remember we have a 4 name REIT short basket)


American Express (AXP) is right back to where it's been failing... will give it some leeway. Moving it up to a 2.5% stake - we covered almost all our Capital One Financial (COF) short so this is effectively covering it for both credit card positions.

I cut about 10% of my short exposure into the Monday swoon (entered the week at 20%ish) - in the weekend summary we were aiming for a 5%ish pullback to get back to S&P 770-780 range ; it all came in 1 day. So this is helping to restore some balance between long/short exposure again -we've been weighted heavy to the long side since Monday late afternoon. I am hoping Prudential (PRU) pops a bit more as well, so I can get a better price to short - its peer Hartford Financial (HIG) is one sickly puppy; worse off than Prudential but I didn't like the wicked volatility - can't watch it that close. Pretty clear where to short HIG by chart.

On the REIT side SL Green (SLG) is really capturing my interest - as you can see it has no signs of life; this one has New York City office space written all over it. Was hoping for a bounce today so I could begin shorting. It looks sapped of energy.

Some excitement on the internets about the mark to market "decision" tomorrow (remember, all our problems are based on unfair accounting) - at this point so many people are anticipating it I would expect a sell the news reaction. The action today in the market overall however, is quite strong.... generally looking at S&P 780 to S&P 825 range... until we break out from this, I assume this is the area we are going to be hanging out in for a while. Range bound and creating a base from which to make the next big move from.

Short all names ex-HIG, SLG in fund; short American Express in personal account - will be short either Macerich or ProLogis by end of day