When markets get stupid like this, I quit thinking. It’s party time and everyone fucktard with an asshat is invited.
Luckily, I was heavily long energy stocks, going into today’s grindhouse. My losses were to the tune of 1.2%, thanks to the amazing decline in both [[FXP]] and [[SRS]]. Also, my short positions in [[POT]] and [[COWN]] added to my losses.
On the long side, I had “big dicked” gains in [[RIG]], [[PCZ]], [[FTK]], [[CTSH]], [[AAPL]], [[NOV]] and [[QTWW]].
The fascinating thing about today’s tape was that it was bullet proof to a $5+ upside move in crude and credit downgrades of [[ABK]] and [[MBI]]. In short, the bears ran for cover, ahead of tomorrow’s economic data. Which is funny, because the data is likely to be bad.
At any rate, almost every sector spiked, especially retail, energy and ag. Just yesterday, I was bitching about being too hedged and expressed my dismay with minor daily changes in my portfolios. Boy am I glad to be hedged today, indeed.
My game plan is fairly simple, yet succinct:
Wait for a “clown bounce” in the financials, then short them.
Avoid shorting commodity related names, despite their “dot commish” behavior.
Go long energy related names, with inpunity, because, as Guy Adami would say: “they’re cheap on a valuation basis.”
Buy more FXP, under $65.
Buy more SRS, under 80.
Sell some AAPL, above $200.
With the dollar strengthening, add to my Indian IT service plays, which include: CTSH, [[INFY]], [[SAY]], [[WIT]] and [[WNS]].
Never fuck with ethanol stocks again.
Off to coach a baseball game.
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