If you notice, whereas 2 weeks ago everyone was talking about a pullback and trying to catch it, now almost no one is talking about... they seem resigned to the "David Tepper can't lose market". I don't blame bears because they have been beaten to a pulp this month, but this is a good step towards a sentiment change needed.
Late last week I began a short of Whirlpool (WHR) but the price was not exactly where I wanted it, so I began with a modest starter position. Today, I am going to (nearly) double up and short a second leg. The stock has bobvious resistance at the 50 day moving average, stopping there intraday every day. Can it break above? Certainly - but it would take a change of pattern and the S&P 500 running over 1150. So I'll take the probability that it does not, and add here around $79; this will raise my cost basis.
I've also added some modest index short positioning as we are near the top end of the range - will stop out of it if S&P 1152 or so is broken.
Short Whirlpool in fund; no personal position
Wednesday, September 29, 2010
Bookkeeping: Putting a Second Leg into Short of Whirlpool (WHR)
Best Of FMMF
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- 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