In light of this Wednesday morning’s commentary, a few emailers asked me were we stood after today’s action.
The short answer: We are now all cash. We have no positions long or short. We are actively looking for shorts.
I will post an update when we make a serious change in our tilt.
UPDATE: May 6, 2010 5:27am
Several readers wanted to know the reasoning behind this:
1) Greece/EU had nothing to do with our tactical rebalancing.
2) This was strictly a technical call — market internals, sentiment, duration of rally, volume were amongst the factors that came in.
3) This is not an end of primary trend expectation — rather, it is looking at the potential of a secondary trend.
4) Ideally, if we get lucky, we will see a rally over the next week, with deteriorating characteristics — that sets up a better entry for shorting new positions.
5) We had a very good Q1 with a handful of strong positions — EK, MGM NYT, THOR, C — so some of the thinking behind our move was locking in a profitable 1st half of the year. We can now look be very selective in identifying trading opportunities.
6) We are now concentrating on screening and identifying new short ideas . . .
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.