It was a good battle but eventually the forces of money printing overwhelmed the forces of rationality. If companies that are warning about full year earnings are going to break out (which Whirlpool did last week), there is really little a person can do on the short side. Until the euphoria ends, it remains impossible to hold shorts for more than a few hours or a day or three.
I will take a 5% loss on the Whirlpool (WHR) short as my stop loss was just triggered over the 200 day moving average. This might be one that peaks its head over a key resistance area based on the tidal wave of the greater market, but when the day comes we have a real drop in the broader indexes, will reverse quickly back down.
With that I've been expunged of all individual short equity positions. I'll look for new candidates nearer to S&P 1170 but the list of choices is very narrow in terms of what has not punctured multiple resistance levels. In the meantime, I drink Kool Aid.
Tuesday, October 5, 2010
Bookkeeping: Stopped Out of Whirlpool (WHR) Short
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