I Can See Salvation

It is tempting – very tempting – for me to add to my oil and energy shorts here. I am enticed by the dancing vision of ungodly profits when the unavoidable happens and this market rally spills its innards all over longs.

However, I am very reluctant to act on these impulses – for obvious reasons.

This October, I got to watch in horror as one of my more spectacular trades to date reversed against me, and, in a merciless deal of macabre, severed my clutching hand of victory from my person – all in the short span of a few weeks.

Yet, I can see my arm lying just before my eyes. I yearn to be rejoined with it; however, to reach out is to risk losing my other.

So I must remember what is prudent. If I were to double down on my failing bet, throwing the proceeds from my BG sale and my preexisting cash position, plus margin, at these shorts, then I could very well see 2012 as my greatest year to date.

I could also end bankrupt.

But if I wait, allowing the world to reunite me with my limb at its own pace, then perhaps I can see the late hour error of 2011 reversed.

NO! Better than that; 2011 would have been very much worth my while.

I sold out of massive winning positions in January of 2011, while changing my investing strategy. I had booked very large gains from that time. I realized slightly larger losses from the October massacre. If I allow my oil and energy shorts to provide me salvation on their own time schedule, then all my gains from early last year will remain – tax free.

Not as good as having realized the gains from shorting oil and energy I had on my book as late as September. But still not bad.

So I wait, and I continue to check my impatience.

Cain Hammond Thaler will sit here in his 9th floor office, and he will bide his time.

If you enjoy the content at iBankCoin, please follow us on Twitter