Tuesday, July 14, 2009

Bookkeeping: Short Macerich (MAC)

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A very strange intraday chart on Macerich (MAC) - you will have to ask HAL9000 and his merry band what is going on here. The stock did a near vertical between 11:15 AM and 11:30 AM, spiking to $16.48 by the end of the 11 PM hour.

This finally triggered one of our short limit order at $16.40, so we now have a 3% stake in this mall based commercial real estate name. In fairness Macerich is one of the better names in the group but I am using it as a proxy for the group (we have PLD and KIM also as short targets but those have yet to hit). With this favorable entry price I can stop out if the stock breaks over resistance around $16.55 (the 50 day moving average). To account for volatility I will give it a little room and set my stop just over $17.00 which limits our losses to 3.5% maximum.

We lost a lot of money in April betting against this horse as commercial real estate was issuing mountains of new shares (and the dilution actually drove the stocks up) so it would be nice to get a win here. As much as we lost running for the hills in the low teens, it is amazing to see it went to low $20s not 6 weeks ago.

1 down (executed) , 8 more limit short orders to go. All the other shorts have almost identical set ups in the chart - a stock that fell below key resistance and my limit purchase to short is just below the resistance line. That way if I am wrong, I take a small loss and get back into cash.

A lot of trading today to get our portfolio positioned as I want.

The Macerich Company operates as a real estate investment trust (REIT) in the United States. The company, through its majority-owned partnership, The Macerich Partnership, L.P., engages in the acquisition, ownership, development, redevelopment, management, and leasing of regional and community shopping centers. As of June 30, 2005, it owned or had ownership interests in 76 regional shopping centers, 20 community shopping centers, and 2 development/redevelopment projects.

Short Macerich in fund and personal account

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