Friday, June 22, 2007


Today was a pretty horrible day to be long. The Dow, Nasdaq and S&P were down 1.37%, 1.07% & 1.29% respectively. Volume was extremely heavy with banking, housing and utilities taking it on the chin. Advancers were outnumbered by decliners 3-1 on the NYSE. Small caps didn't do too badly today with the Russell 2000 down only 0.6% which is comparative outperformance to the overall markets.

Some winning stocks today included BX JBL M SMSI SOHU. The stocks getting beaten up included QTWW INPC ALTH VRNM ZN NUAN.

Today was a good day to have plenty of QID SDS MZZ DXD SKF stuffed away. You never know when these hedges are going to come in handy.

Gold did really well today with my GLD position closing up . Its about time gold seperated itself from the overall market.

Blackstone Group's IPO was the main story today with the stock jumping over 20% at its open before settling down at the close. Forbes 400 members Schwarzman and Peterson are now both billions richer and laughing all the way to the bank.

With the volatility in the markets in recent weeks, cash is king . Wait till the market regains direction and then deploy the cash towards profitable use. I am glad I decided to liquidate some long positions a few days back. The extra cash can either be deployed towards inverse ETFs, puts or shorting stocks in general if a bear phase commences. On the other hand if the market regains its upward tilt than I can load up on some strong trending stocks like SNDK HANS MU NTRI PRAI OVTI BIDU and bull ETFs like DDM SSO QLD MVV UWM.

Right now I feel worn out. Exhausted like I've run a marathon wearing a 500 lb body suit. Its really hot here in Arizona. You step outside for a second and feel drained out. The sun zaps every ounce of energy from your body.

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