Monday, August 17, 2009

Bookkeeping: Lots of Transactions

After being on slumber for the better part of a few weeks today will be a very busy today, I will put all transactions into this post. Here is my game plan - I think this selloff has legs but of course only Goldman Sachs knows. We mentioned SPY 98 as the first gap to fill. This "latched in" this morning. SPY 98 is about equivalent to S&P 500 980 ... not exactly but close. I think S&P 950s is a probability but you'd expect bulls to make a defense here. So I'm going to cover some short exposure and some of my limit buy orders I had outstanding on the long side hit here.

If the downturn continues we will scramble out of some of the new long exposure and add back short exposure... that is how I anticipate it working out but as always, we don't know.

Here are the litany of things I am doing


Covering Valueclick (VCLK) around $10.05 - all of it, nice quick profit of about 9% in 6-7 sessions with 4% of the fund. I will reshort on any decent bounce (+6-7%)

Selling 20% of my SPY October 95 Puts (SWGVQ), these are up 50% from the close Friday ($2 to $3) - we have 200 contracts, we are selling 40 of them. These are to be held over the longer term as insurance but on big down days they are worth locking in some profits. If we begin to break down and look headed to S&P 950s I will get them back, or on any cursory bounce. I'll sell another batch if and when S&P 950s hit. Obviously S&P 906 would be the place to sell the last batch. (cross fingers)

I'm taking a touch off Wynn Resorts (WYNN) for a 10% loss, down from a 20% type of loss middle of last week. This one was a mistake on my part since I did not realize earnings were the day after my short position so we're just looking to save face here and take manageable losses. Anything above that is icing on the cake.

Covered 20% of Caterpillar (CAT) for "flat", if market breaks down will get that exposure back later in the day or week.

Covered 50% of Riverbed Technology (RVBD) around $19.40 - will look to add back exposure on a bounce. Quick 5% profit locked in on half of the 4% exposure.


Limit order to buy Longtop Financial (LFT) down -13% today, hit.

Began position in E-House Financial (EJ) down -13% today

The above two if they begin to falter more I could be out of in an hour or two - these are not core positions at this time.

Added (still going slow) to a core position in AsiaInfo Holdings (ASIA) - we only had a starter stake (0.1% stake) so this would stand front and center rather on a watch list, but now its fallen quite a bit more so we are adding another batch. It is still not yet a 1% stake.

All of the above are Chinese names... I don't think China is done going down hence, I am almost assuredly early in making any purchases. Things are moving very quick today so I'll try to be as transparent as I can as quickly as possible.

(post in process and to be updated during day)

Earlier posts on some of the names mentioned above

[Aug 12, 2009: E-House Holdings (EJ) Benefitting from China Housing Bubble 2.0]
[Jun 12, 2009: Beginning Stake in Longtop Finanical]
[Aug 7, 2009: Niche Play on China Telecom - AsiaInfo Holdings]
[Aug 12, 2009: Bookkeeping - Buying Oct 95 SPY Puts]
[Aug 7, 2009: Bookkeeping - Short Valueclick]

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