I am getting my teeth kicked in, holding [[DIG]] , [[IEO]] , Freeport-McMoRan Copper & Gold Inc. [[FCX]] and Western Refining, Inc. [[WNR]] —amongst others. However, my scientific blend of shorts:longs has resulted in a 1.9% gain—intra-day.
On days like this, it’s important to evaluate your portfolio. This is the stress test that will determine how prepared/unprepared you are. If you are having a very bad day, you are too long. On the other hand, if you are up too much, be careful and throw some longs on the sheets.
Reason being: the market never cooperates. The market is filled with idiotic participants (Vince Farell) who diligently work to delay the inevitable. It’s like one big game of chicken. Who will turn first?
I’ll have you know, “The Fly” drives a mean time machine, armed with machine guns and internet laser beams, capable of “junking” his opponents into a small stack of garbage.
Currently, I have no reason to make a move. My allocation is perfect—not too risky nor conservative. Best case scenario, oil runs and banks crap out. However, I don’t think that will happen anytime soon.
Look at National-Oilwell Varco, Inc. [[NOV]] and ask yourself: “would I rather own that business or Citigroup Inc. [[C]] ?” Then make your move.
Going into the close, I will try to short Pzena Investment Management, Inc. [[PZN]] and Legg Mason, Inc. [[LM]] . Both of them have a lot further to drop. Also, I am short Goldman Sachs Group, Inc. [[GS]] . That stock is trading “graveyard grim.”
NOTE: PZN is going to zero, in my humble opinion.
Comments »