Hi all,

We’ll get to know each other soon enough, but generally I seem to be the polar opposite of ‘Le Fly’.  Where he casts a wide net, I focus on a single trading vehicle.  While he typically is long or cash, I’m almost exclusively short or cash.  If he’s Flo Rida, I’m Michael Bublé…or something like that.

Anyway, I’m new here and plan to show you how I trade, document my performance and share what I’ve learned over the last 15 years or so of progressively more aggressive trading.

For tonight, while the rest of you are eating BBQ and drinking beer, I’ve digested everything that went on this weekend and have decided to put on a ‘starter’ short position in the ES (that’s the e-mini futures).  I’m short a single contract @ 1413.50 (reminder, the ES trades at a slight discount to the index right now) which is the equivalent position of being short the S&P 500 with a $70,675 position size.  You calculate this by multiplying the value of a single point of the contract ($50) times the index value (1413.50).  We’ll cover lots more on the mechanics and advantages of futures over the course of time so no need to take notes.

Generally I’m worried we’ll be tipping into a recession but you can’t be too negative with the FED buying $40B of worthless MBS from its constituents per month who then do the FED’s bidding by putting the new cash ‘to work’ elsewhere in the market.  That said, I like the risk / reward tonight for a little pullback and a nice fat opening gap tomorrow so I’m short as of 5:07:59 (to be exact) central time.  I’ll set a target somewhere around a half a percent and may put a few more contracts on (short) if the index does an ‘Asian levitation’ over the next few hours.

Any questions, ask away.

-EyeWall

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