Sunday, May 17, 2009

Short Story

The times are tough now, just getting tougher
This old world is rough, it's just getting rougher
Cover me, come on baby, cover me
--Bruce Springsteen

A week or so back, I went short the S&P for the first time in quite a while. Just a token position at a technically overbought juncture. I covered a couple days later after we came off a percent or two.

At some point, my sense is that there may be a huge downside wave to ride. However, this may not be this year's business.

If/when the break occurs, I hope to be fortunate enough to recognize it. Meanwhile, I want to hone my short side mechanics.

no positions
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2 comments:

OSR said...

I bought a little SH last week, which I still have. I'm on the fence about a huge move down. If anything is too big to fail it's the NYSE and we've seen forceful pseudo-legal gov't intervention with BAC, the TARP recipients, and the senior automotive debt holders.

I have no trouble envisioning the gov't telling institutional investors, "No block selling without permission. We'll fill the holes in your portfolios, if nesessary."

May 17, 2009 at 11:25 AM
fordmw said...

The interventionary forces may be with us for a while, which is why I don't have an immediate urge to lean on 'em for a big move lower. Once these forces wane, then the chances for a big break seem more likely.

May 18, 2009 at 10:51 AM

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