I’m not thinking about today’s sell off, as I refuse to get sucked into the vortex. Yes, today was an ugly day with broad declines. It’s true the CDS market is going bonkers, clamoring for a euro crisis. It’s also true the Wikileak guy is targeting banks (see BAC). However, and this is a big however, Santa Claus is coming.
You are fucking fooling yourself if you believe the rally is dead. There are loads of people out there spending oodles of coin on meaningless shit. Traders don’t have time to gloom and doom. Believe you me, I will NOT be positioned heavily long into January, as I intend to take profits and position for an early 2011 drop. But this is not the time to bet against Bearded Clams, and things of that nature.
Having said that, I like the seasonality of KBH here, up 19 of 22 years in December for an average return of 9%. Everyone hates the homies; therefore, I endeavor to buy them.
In closing, I lost about 1% today, cutting my year to date gains down to just 46%. In order to punish myself for today’s underperformance, I will dine at a 2 star Michelin restaurant this evening, instead of 3.
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