Thursday, July 31, 2008

Still Bearish ?

I received an email from reader WD asking me the following;

I enjoy your blog very much though I have a question. I noticed you getting more defensive, meanwhile the economic news continues to worsen shouldn't one be getting more aggressive in this type of circumstance?
thanks again WD

WD,

thanks for reading and your question. Yes I have been getting defensive but quite frankly through no fault of my own. My stops have been getting hit, and like it or not, that is just the markets way. You must learn to respect the market no matter how much you may disagree with its initial or recent reaction to an event, for it you don't you will be bankrupt quicker than Nick Leeson.

I realise I am MUCH less short than I desire to be, but I have learned to let the market tell me what to do, not the other way around as I have tried that and have the trading losses to prove it! I take some consolation that I do have a bet on the table with 1 unit of the DXD and QID. I am on very high alert for a good entry point.

So in conclusion do not infer I have changed my stance in any way. I see the bearish news and circumstances abound and soon, very soon the short bus riding equity cheerleaders will as well, losses have a way of doing that to traders.

I hope this essay helps !

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".


Open Positions:
Long 6 units Currencyshare Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 4 units Currencyshares Swiss Franc ticker FXF @ $97.70 stop at $93.82
Long 1 unit Ultrashort Dow DXD@ $50.12 stop at $58.62
Long 1 unit Ultrashort QQQ ticker QID @ $37.05 stop at $42.87
Long 2 units Hecla Mining ticker HL @ $8.50 stop at $8.09
Long 2 units Ultrashort 20yr Treasury ticker TBT @ $67.85 stops at $69.24/68.32

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