Summary:
Roller-coaster week. The FNM/FRE bailout catapulted my financial holdings higher Monday. I ended the day up about 2.5% only to lose all that and more on Tuesday. Wednesday and Thursday were marginally down, but a big comeback on Friday left me up 1.9% for the week.
With the pop in AMREITS on Monday I sold my ANH calls for a small profit. I continued to trim XSI as I think it is fairly valued but still have a large holding. I picked up some more SNEN at 5.5 and unloaded most of that at 6.5. In markets like these, it pays to unload after large sudden moves. I added some CNEH, RICK and NRF-B at what seem like ridiculously cheap prices. I also shorted a TOL.
As usual after an up week, I am cautiously optimistic about my portfolio. I was especially encouraged about the rebound in miners, which have been causing me angst. To avoid panic selling, I keep reminding myself of the Economist article several weeks ago that says there will not be a collapse in commodity prices. Still, I will be cutting back on strength. I feel fairly sanguine about most of the other stuff I hold. Good companies getting dragged down by a bad market. But this can continue for a long time. Opportunistic profit taking will remain important going forward.
Positions:
Long: AHR AHR-C ALSWF ANH EPMWF GREXF MDNNF MEAOF MLKKF NRF NRF-B QADMF RICK SGTI SNEN XSI WHX
Short: GAP GCI KBH MEG MNI TOL.
Calls Long: CMO Nov 12.5.
Calls Short: .
Puts Short: NLY Oct 17.5, 16; NRF Sep 7.5, Oct 7.5.
Cash: 2.8%
Short Pct: 6.3%
Read:
Stocks Researched:
Positions most worried about: MLKKF, QADMF: though copper may be stabilizing.
Positions most sanguine about:
Biggest market worries: more LEH.
Thinking about:
Outlook ( up-flat-down surety rating: 1-5 reasoning):
US: flat-down, 2.0; still not out of the soup.
Tech: ??
China: up, 2.0; strong economy and has fallen alot.
Silver: flat s/t, 2.0, price action; l/t up, 1.0, industrial demand, but price rises.
Gold: who knows?
Copper: flat-down, 2.0. US demand falling.
Real life: fairly productive.
Weekly sleep and exercise: lots of boxing and soccer. Sleep ok.
Mood: good
