We took our QID and SDS leveraged shorts off today.

Not that we won’t put them back on eventually, but the 200 day moving average seems to be pretty decent support for now. (We added longs back in March)

This capital has yet to be redeployed — we are now running about 39% cash in Long/Short, our most aggressive portfolio.

More as this develops . . .

Category: Markets, Technical Analysis, Trading

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.

11 Responses to “Closing Out Shorts (39% Cash)”

  1. JimmyDean says:

    BR: what is your take on the end of QE2? Will it have market impact or no?

  2. Ted Kavadas says:

    RE: “but the 200 day moving average seems to be pretty decent support for now”

    Yes, it seems as if the 200 dma has served as support. I am very curious to see how the market reacts to Bernanke’s Press Conference Wednesday.

    If the 200 dma on the S&P500 doesn’t hold as support, I think the next major support level is the 1220-level. I think it will be very significant if the 1220-level doesn’t hold, as it is significant on many fronts.

    For those interested I recently wrote a post regarding the 1220-area and its significance; here is the link:

    http://economicgreenfield.blogspot.com/2011/06/s-since-2007.html

  3. What do you mean by “39% cash in Long/Short”?

    My understanding is: 61% Long + 39% cash-neutral (39% long + 39% short)?
    So gross exposure + 61% + 39% x 2 = 61% + 78% = 139% ?

  4. MayorQuimby says:

    Funny. I closed out a short position this morning myself. I’ll be reshorting at some point soon. I don’t think this next leg up has that much far to go but we shall see.

  5. royrogers says:

    thanks for the update on your positions.

    Now the question is, how bearish are you compared to march ??

  6. nofoulsontheplayground says:

    BR, there’s a lot of ugly charts out there. However, one that looks good to me in the next couple of weeks is ADM.

    Even though ADM could be making a right shoulder of a H&S top here on the daily, it should run up to $33.35 and possibly even $34 over the next 3-weeks. The chart is set up for a move up to $32 in the next couple of days, although it will likely not close above 32.13 this week. A stop around $29.00 to $29.36 gives a very good risk/reward ratio as well.

  7. Sunny129 says:

    Does this mean that the market (US) is discounting any potential fall out from Greece/Europe debacle, within 24-48 hours?

    If it is, then it is too good to be true!

    Will the PM of Greece get vote of confidence?
    Can the Greece parliament pass the required austerity measures?
    Are Greek citizens willing to cede their Sovereignty/Democracy to Troika?

  8. quiddity says:

    Always appreciate position updates. I’ve been in neutral for months (well, slightly long) wondering about the end of QEx, Greece, and the general roll of the U.S. economy. I’m inclined to believe there will be a downturn somewhere going forward (in the next 9 months?) as part of – not sure what to call it – consumer exhaustion. Not that the consumer is going to completely shut down, but the persistent 10% unemployment in so many areas has got to have an effect. Or maybe they don’t matter any more. I dunno.

  9. krice2001 says:

    I second what quiddity said — always appreciate your position updates, Barry. I’m not a trader so my positions are always a matter of my percentage equities, vs. bonds and cash. I’m currently at a fairly low equity exposure, just see a lot of risk. And you, Barry, have not been bullish which is a strong indicator for me.

  10. boveri says:

    That was a real sweet call Barry — well done!

  11. victor says:

    BR: do you think RIMM may soon be a candidate for a process a la BP?