Hi kb,I am pretty maxxed out on my short exposure ...

2008-03-14T09:44:00.000-04:00

Hi kb,

I am pretty maxxed out on my short exposure per my own set rules of not going over a quarter of the portfolio. It is hard to answer your question because going into the Fed cut a lot of rules are thrown out. In fact this market is so nervous for both bulls and bears it is hard to trade on technicals of late. News events dominate. Technicals work best when a rumor on TV doesnt move the market 300 points. Right now any whisper can whipsaw this market up or down 200 points so it is just hard to sit here and say I will do this or that.

If we were in a normal market, I'd say I'd get more bullish on a move above S&P 1370 and bearish on a move below S&P 1270. Each time we retest 1270 it will become weaker and eventually fail. But right now a case could be made that we had a "double bottom" and that a big move could be made off that level. With all this uncertainty I simply and sticking to my hedged strategy - which means I won't win as big if the market takes off nor lose as big if the market fails. I prefer markets that have a trend to them; this market is completely direction-less and prone to constant rumor and hope and CNBC reports. Makes it difficult to predict anything out more than 30 seconds.

Trader Mark.. how will you trade your short exposu...

2008-03-13T21:07:00.000-04:00

Trader Mark.. how will you trade your short exposure when S&P again tries the 1270 area. Do you once again cover that position when it goes to 1270 or hold for futher decline. I have been short from 1310 area but have held position only to see it bounce off 1270 and back to 1320. Would you add to your short exposure if markets moves back to 1320-1330?
KB

Comments on Fund My Mutual Fund: Bipolar Market Continues

Hi kb,I am pretty maxxed out on my short exposure ...

Trader Mark.. how will you trade your short exposu...