Tuesday, September 15, 2009

Bookkeeping: Closing Caterpillar (CAT) Short

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I am trying my best to do things that would mark a top in the market, such as closing out short positions at losses. But for now it still feels like being inside the clutches of a boa constrictor to be short anything... I was willing to hold Caterpillar (CAT) through about $48-$49 as that is where it has topped out of late, but today's move has propelled it through that big time, so can't sit here and accumulate material losses.

Likewise to Riverbed, momentum based models love breakouts like this ... so one could consider it as a long here. I assume, short of the printing presses running out of ink those gaps in the mid $30s will require an Armageddon like moment. ;)

We're taking our 2.2% allocation and going home with a 13% loss. Can you feel the squeeze?

We came into the week pretty well hedged 1:1 (close to it) but with the transactions today and the SPY calls I bought yesterday we are quite heavily skewed long for now.

No position


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