Bears - Go Run and Hide!
Market Outlook: The best I can give is to play small. Futures were down to 800 at one point and they have recovered to about 810, mostly to the Centex Homes and Pulte Homes merger. I believe we will retrace very, very soon (we might be in it now) so keep HIGH cash levels. If you have strong profits, take half or all. We could easily pull back to 700, which I would love. When you have the opportunity to buy great firms like AMZN for $50-60, you can make alot of money. I still think we can rally this week because of thin volume but honestly, I am the only person that believes so. I looked at my positions and there is really what I have. I have about 50% cash, 10% short/fixed income, 40% equities. I really want to reduce my equities holdings to about 20%, to get about a 70% cash level but I jammed right now because I have unrealized losses in a bunch of names. Plus, I have some weird longs like JAVA that could be bought or "in play" any minute. If I had positions I had to sell now, they would be CIEN, CROX, GNK, and JASO but most of these are really tiny positions and I want a strong pop then will clear them all. PCU and JJC I will not sell but may even buy more. EMC is on the brink but I will hold TTWO and IBKR because these are companies I really understand. IBKR's downgrade was too negative, the same clowns were downgraded them, downgraded ICE and ICE shot up like 5 points yesterday because they are moving CDS paper like crazy.
So in conclusion, I think it's best to get a little short here but more importantly raise some cash.
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