Market Wrapup

Great day on the market folks, this was the short squeeze I was looking for. WFC destroyed the FAZ and the bears today, announcing a record $3 billion profit for Q1 2009. I tell you, these banks might be drilling earnings and all of these CEO's are sandbagging. I did not see this coming at all. My dad told me told when FAS was at $5 and FAZ was at $28 - "at same point, these will touch" and he is right, haha, it might be real soon.

Let's just think for a minute. A month ago the S&P was at 668, people were saying we were going to 500 and to sell everything you had in the stock market. Now, the S&P is at 856 and looks like it can hit 900. One month! That's all it took. The VIX (the fear indicator) is below 40. Big money managers will throw mad cash in the market with the VIX below 40.

As for my portfolio, I am in 50% cash. I booked alot of profit today and I'm proud that I stayed that displined. I am a little pissed about TTWO but after deal rumors go away (they might not) the stock may go back in the low $7's and I will take it back. If not, I will step back, realize that I knew the story and I can do it again, with another firm. My biggest position remains copper but I look to trim some next week (PCU, not the JJC). I really wished I would have pulled the trigger on DKS or GNK today but just didn't do it. The TLT remains my "fear hedge" so if the market tanks, it will go up in price (as people run to treasuries). However, I am aware this thought could be ending soon, as people will develop more appetite for risky assets (therefore I will bite the loss). Small caps are rolling, so I kept my JASO, CROX (250 shrs), and FEED. In addition, I believe tech, semiconductors, and copper will remain hot, so I got my exposure with TSM, EMC, PCU, and JJC. My portfolio YTD return is still great (its over 100% but won't say because I am not like that) so going forward, I will trade more cautiously, yet more agressively. Meaning, I will double up my time on the research, be more selective, and build bigger positions (and hopefully fewer names), both long and short.



Monday is a new day, so think fresh and there are always opportunities out there, long or short. I will post my thoughts on FEED, as well as other stuff over the weekend. Have a great Easter!