Monday, May 4, 2009

My Portfolio Kicking Ass

If you look at my positions,  you will know that I have a very good day.  I am long the financials, China, and materials.  All of these are doing really well as this market rebounds.  I'm unfortunately a little bit more in cash than I want to be but I've been waiting for a pullback that does not seem to be coming.

I don't see any reason to rush into this market still, but I've been saying that for the last several weeks while the market continues to make new highs.  That leaves me with a lot of cash to try and figure out what to do.  I do think this rally has been getting a little long in the tooth, but that is the problem with crazy markets.  They do not have to make any logical sense.  I've been wanting to get short the market, more short than my current short position in the dow.  I think I will do a hedged position tomorrow.  I want to get a little bit longer on my materials and China position and then get short the market for the eventual correction that we will get.

I suggest you do the same.  This rally is going on eight weeks.  That is pretty crazy if you think about it.  People are piling into stocks to avoid missing the rally.  At some point, the buyers just will not be there anymore, and that's when the market is going to reverse and reverse hard.

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