A big day on the street, with the S&P breaking out and closing at 750. In addition, the DOW had triple digit gains, mostly lead by the finanicals. In my view, I think we have some ground here but we are approaching "shorting levels". I have been 100% long for about 3 weeks now but now it is time to begin looking at short positions. The S&P should test the 777 level but if we fall below 740, there is a good chance we will go much lower and retest the yearly lows on the S&P.
As for the portfolio, the portfolio value was up $1,474, mostly from gains in PCR and TTWO, as well as sales from the UYG call options, TNA, and AXP. I am still long TTWO, PCR, FXI, X, KIM, and TXN. YTD return is +107.65%.
As for some of the longs, TTWO closed above the 50 day MA, but barely. The day traders found this one late and got in, just to dump it. I like the name, even though the firm had a Q1 loss. I like the cash levels, low debt, as well as the product porftolio. With that being said, I think it can go higher. PCR remains my top position and has done great. I like the sector for a trade and will probably hold for the next two weeks; however, I might change my mind. I should have dumped X but I at break-even, so incase we rally to 777, I will hold it. KIM is nothing more than a short squeeze trade that is working, sold half earlier, but still have 100. I like China, so I own the FXI, to get some international exposure. Lastly, to get a piece of the NASDAQ, I'm long TXN.
All in all, I liked today's rally and hope we continue. In terms of the market, I feel that it maybe time to get short soon because I feel this is not a bottom, just a bear market rally; however, I could be wrong.
I will do some homework to find some good shorts and I'll pass them along soon, Until then I am keeping high cash levels and some longs because I don't want to be caught short in the bear market rally, it's not fun (been there, done that).
Off to watch some college basketball, have a good one.
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Another great day on the street - with no real great economic news and signficant earnings surprises. Kinda of makes you wonder if this really is just a massive short covering that occurred this week, after all, the major indices did drop over 7% last week alone. Take a look at the following charts - FAZ, SKF and SRS. These are levered ETFs, but you can notice a very similar pattern: all have lost over 50% in the past week alone!
ReplyDeleteAs always, do your homework before getting on with these volatile movers, but we have definitely gone long - maybe too long - this week. SRS is setting up for a great rip if the market turns south, as it follows the US Real Estate Index.
As rf has pointed out - the REITS are in big trouble, this one might be another FAS in the waiting on the downside!
LOVED THE TTWO trade today! That is a great company, going to get some detailed fundamental analysis on that company out in the next few days.
I agree with RT, the TTWO trade was classic! Nice call on that one RF. I am thinking about buying REW since the NASDAQ has had such a huge move. Any thoughts?
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