The “Lord and Commander” has two short positions on, are you kidding me? I never thought I would see the day where this would happen, now I have. I, of course, short rather often, but have been tapering down on it because of the bull rush. It’s just not safe in the type of run we’ve been having. I do think you guys are all overreacting a bit though. In all honesty, we needed some digestion and correction. I’ve been saying lately how I’ve been trying to limit risk after being up so much to start the year. I know what you are thinking, today’s Tesla trade. I agree it was a gamble, BUT I liked their numbers and their guidance.

TSLA missed badly on EPS, I agree, but they beat on revenue, and their cars are going to be flying off shelves. Rich folks with “green guilt [sic]” and what have you. I’ve seen at least one everyday the past two weeks, I couldn’t tell you if they were the same or different cars, though I did see them in multiple parts of the city. People love this stock, and this company. They’re not a car company, they’re a tech company that caters to a certain segment of the population, the AAPL of cars, if you will. If we do continue down in the morning, I will look to sell almost all of my longs except for TSLA, PMM, ISRG, TZA, FB, EXK, SWHC, RGR, and GILD. I’m on the fence about selling LULU and WNR. I’ll keep my only two shorts– JOSB and STP –on, but will look to cover STP in the near future. 

If we are going to hurl ourselves off of a Olympus Mons tomorrow, I am going to want to have as much cash on hand as possible. I’ll need the cash to lever up on shorts, and buy a ton of puts. BUT, and it’s a big but, I will never get lower than 50% cash while having mostly short exposure. If we continue downward here are some names to watch in the morning:

TZA DUG GLL ZSL TLT 

Charts for my positions mentioned above here

Charts for stocks to watch here

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