Summary:
Had a sliver of a gain 0.1%, but much better than my recent returns. Probably overstates the upside as once again XSI, which had fallen to 1.60, rose .10 on a small amount of shares. I was down much worse in the morning, but things recovered. Was this one of those reversal days which portend better days ahead?
My shorts all gained today (i.e. I lost money). MNI rose 4.25% for some reason. I was tempted to short more. BSC rose 4% giving my short of yesterday a black eye. It seems they may need to put up less money to bail out one of their funds than thought. Or so they say now.
There was an Economist article in the last few weeks comparing the 1980s LBO-led boom and the recent private equity one. They detailed how when the bankers shut off the money tap, it was a sign of the end and that this was the sign to look for. Well a deal to sell bonds for US Foodservice just broke down. Could this be the sign?
Sold my TRA today before it recovered in the afternoon. Added back the MLKKF I sold yesterday as base metals prices improved.
Positions:
Long: JEQ NXG HBMFF ALSWF FFHL AOB XSI NTLRF EXDUF ETEL GREXF MLKKF QADMF SHERF OKOFF.
Short: LEN GCI HBI HLS MNI AMZN YHOO TOL.
Options:
Cash: 33.3%
Short Pct: 19.1%
Trades: Sold TRA@23.15, 23.10; added MLKKF@6.95
Read:
Stocks Researched:
Hours spent on market: 3.0
Positions most worried about: FFHL, reporting seems suspicious. Metals, continue to drop. How close are we to a bottom?
Positions most sanguine about:
Biggest market worries: rate rise induced meltdown
Thinking about: shorting more.
Outlook ( up-flat-down surety rating: 1-5 reasoning):
US: down, 2.0; rates are rising
Tech: ??
Japan: down, 1.0; strong GDP, but weak international markets
China: ??; price action, but getting bubbly.
Silver: flat-down s/t, 2.0, price action; l/t up, 1.0, industrial demand.
Gold: flat-down s/t, 2.0, price action; l/t up, 1.0, industrial demand, GFMS study.
Copper: flat-up, 1.0. Strikes on the horizon.
Zinc: up, 2.0. Declining stocks.
Real life: Working on summer schedule.
Previous night sleep and exercise: 7.0 hrs; light biking Tues. Arm still bruised.
Mood: calm.
