Bookkeeping: Closing Longtop Financial Technologies (LFT)

I am doing a lot of rearranging of furniture today... I have to say I am seeing a lot of charts rolling over hence I am moving quickly. Anything thats flashing even a yellow caution flag I am looking at very closely. Longtop Financial (LFT) is not giving me comfort - I only have a 0.2% stake left, but the chart is yelling short more than long to me right now. I am going to take a 8% loss on this tiny batch and head for the hills. This is another name we'll revisit in the future as I still like the story here.

I think this market has one more decent bounce in it next week, to fill the gap created this morning and that's going to be the gap to short (last hurrah)... unless we break S&P 900 right here. So either on that bounce or below S&P 880 I expect to turn much of this cash to the dark side. Remember, we've been stuck in the box (range) for 2 months - until proven otherweise we're just churning form 1 end of the box to the other - eventually we'll break out one way or the other and that's the time to pounce.

Until then, we're still quite net long (but "small") with a mountain of cash.

[Jun 12, 2009: Beginning Stake in Longtop Finanical]

No position