Summary:
Wow. I got absolutely POUNDED! Yes I know everyone did, but all veneer of levitating above a falling market has been savagely ripped away. Since not exactly where I was last week, don’t know exactly how much I lost but must have been 25-30%. The real killer was ALSWF, which fell from 6.45 to 2.36. Its 20% of its value only about a month ago. It tanked on Friday, when everything else recovered on a diminished outlook. SNEN, NRF-B, SGTI and AHR were not that far behind.
If I had been smart enough to carry even 25-30% cash I would feel alot better about things, but I don’t have a huge amount of resources to take advantage of what I thing are huge values. NRF-B yielding over 30%? AHR and AHR-B trading as if bankrupt (no sign of this yet and have Blackrock backing)? SNEN affirmed guidance on Friday of earnings of .90-1.00 and is selling at a 3 handle. Obviously its possible these numbers don’t get hit, but with their expansion proceeding apace and China holding up, its a good bet.
Last years triumphs have really hurt me this year. When Shanghai dropped 5% last February and markets started to tank, I immediately raised lots of cash. Since then subsequent buying the dips opportunities left me complacent. Even when one likes one’s positions, as I still do of most of my portfolio, there are times to cut across the board. This is something hopefully I have learned for next time.
Next time is not now though. I will be trading in and out, but I think we’re near bottom. I think I can get at least 20-30% back before real danger. High dividend yielders are especially attractive. Provided they don’t go bankrupt, they should do very well when things calm down. I think we’re in for more muck, but don’t think the world is ending. Still, if anything explodes up, I’m out of it. The one good think I think I managed to do was to dump ANCI. I still like the company’s prospects, but its valuation is well above where it should be in this market.
For the week, I got completely out of ANCI and sold some QADMF. I added CMO, NRF-B, and SNEN, closed my CRM short and trimmed my TOL short.
Positions:
Long: AHR AHR-C ALSWF ANH EPMWF GREXF MDNNF MEAOF MLKKF NRF-B QADMF RICK SGTI SNEN XSI WHX
Short: GAP GCI MEG MNI TOL.
Calls Long: CMO Nov 12.5.
Calls Short: .
Puts Short: NLY Oct 17.5, 16; NRF Oct 7.5, Dec 7.5.
Cash: 7.6%
Short Pct: 6.2%
Read:
Stocks Researched:
Positions most worried about: everything and nothing: what more can happen.
Positions most sanguine about:
Biggest market worries: the market 
.
Thinking about:
Outlook ( up-flat-down surety rating: 1-5 reasoning):
US: flat-up, 2.0; dead cat bounce at the least and lots of intervention.
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: was on vacation in sunny Hawaii.
Weekly sleep and exercise: swimming and biking. Sleep ok.
Mood: holding up alot better than my portfolio, but more than a little frazzled 
