Futures seem relatively flat, which is expected after a monster day like yesterday. I have no idea what the market is going to do today but we could give back some but I don't think it's nothing major. The charts are telling us that support on the S&P are at 924, so we might have a re-test soon but then again we might not. Let me quickly elaborate on the market. I personally know 3 hedge fund managers and I am in contact with them daily for the most part. Here is their view and allocation:
1. Manager #1 - I would say at least 65% cash, 25% long, 10% short. Doesn't know if rally will continue.
2. Manager #2 - Was next net short, which no short exposure on individual stocks but on indicies. He covered a new portion of his short exposure and added some international exposure and so small cap value. I would say he is 80% long, 20% short. Market neutral.
3. Manager #3 - Has barely any short exposure, maybe 4% at most (if any). Long about 80-85% and about 15% cash. Believes the market rally will continue.
Each of these 3 guys have had monster years because all three caught the bottom. One of these 3 leaves buys in the comments sections from time to time as well. The point is that all 3 views are relatively different, so I personally am 78% long and 22% cash.
I see that JPM is raising $5M to repay tarp. Think there could be a trade in JPM if you can get the stock on the open market below the offering price. Many other banks are doing the same, which is a good sign. As for my holdings, I will hope that I don't get speared by my OTC biotech picks but who knows, if I lose, I lose, it's a lotto ticket. I am refering to NEPH. This thing could drop to 10 cents on a bad ruling or double on a good ruling...so we shall see. I gotta run, catch yall later.
No comments:
Post a Comment