Not many places to hide right now, and a lot of charts are going sour at once. Braskem (BAK) is sitting at the edge of turning bad - after a sharp dip in the opening minutes it spiked back up but I am going to sell 1/3rd into the spike to mid $15s simply to reduce risk.
If it continues to break down we'll let more go.
Amazing how quickly things change... the S&P is now below 1115 which if it closes at this level would mean a "lower low" versus late December. Looks like "the boys" were really blindsided by Obama's announcement yesterday .... but at this rate we should hit a short term oversold moment relatively soon.
I've added some portfolio insurance via SPY puts (February contracts) just as a hedge, although we are now down to 30% long and shedding by the hour. If the S&P jumps back over 1113 or so on an oversold bounce, I'll release the puts.
Long Braskem in fund; no personal position
Friday, January 22, 2010
Bookkeeping: Cutting Back Exposure in Braskem (BAK) by 1/3rd; Adding Some Short Insurance
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows