Eventually I Have to Close this DAMN $HDGE P.O.S.

Fri May 10, 2013 4:48pm EST 10

I have positioned myself in these markets exactly how I didn’t want to—long this HDGE cheese and bologna sandwich with a side of stocks and cash. What a shame it is.

This is how the week has played out for the Raul:

I’m trading this ES_F in the mornings. I enjoy the process and planning. My win rate is 70 percent meaning I’m right WAY more than wrong. This is a critical component to consistent profitability. However, I’ve deviated from my plan a few times this week and it has resulted in me losing money. I’ve lost over 600 dollars, a gift to the market gods. I kid you not, EVERY time I deviate from my plan I lose money. Every time. Next week, my goal is simply to not deviate from the plan. If I stick to my plan 100 percent next week, I’m going downtown and getting a steak the size of a toilet seat. Until then, no red meat. I’ve been too aggressive.

I’m red on stocks too. Unreal right? Stock market went up five days straight! My CREE is up 6 percent. I’m still red. I had a losing trade in ANGI. Other notable weakness in my book includes FB and SAM. BBRY is new and still looks decent, same with new long YELP bought this afternoon.

I have this damn HDGE. It hasn’t bothered me all week, until today. I bought this position as insurance for my book. Much like real life, the insurance just costs me money and I receive zero benefit beyond homo peace of mind. I’ve accepted that. I even expected that. But my patience wears thin. My cost basis is $18.30 and it’s unlikely we see that level any time soon. HOWEVER, it’s so very oversold here. “Markets—rational—irrational—solvency” bla bla bla. I know…I’m not adding to this name, I’m simply managing my way out of it. I’ll close on the next bounce.

As bad as this all sounds, my book is hardly down. As a matter of fact, I’m 12 percent YTD. Last year about this time I had already given back all my double digit gains on the year. Perhaps memories of that savage dick punch are what have me positioned oh so homo.

All-in-all I still consider this week a success. Sometimes you just have to pay the troll toll to get out of a market hole. I’ll be burning thickets of sage to cleanse my home of demons and digging into The PPT for clarity. Best part: we get to come back Monday and do it all again.