More Short and Less Long

I used today’s Fed debacle to lighten up my long positions and increase my short positions further. Here’s a summary of my trades.

Sells

(EMC) $17.50 calls at a premium of $2.65

(CEUA.OB)–Sold another 20% at $5.62

Buys

(SDS)–bought a small position at $52.75

(USO)–doubled my short at $74.07

My decision to fade the rally was a pretty easy one, because the Fed just completely eroded the confidence of the markets with today’s pandering action. Jim Cramer said it best when he noted that the people that today’s injection was supposed to help–C, CFC, WM–were all down big pretty much from the start. All the Fed did was give the big guys a chance to get out at ridiculously inflated prices, and left the little guy holding the bag. Despicable. These guys don’t get it, and we’re going lower because of it.

I was not pleasantly surprised by the huge spike in oil today, and it remained strong throughout the day. Tomorrow will be telling, because if oil doesn’t reverse lower as it has on the past 3 rally attempts, I may have to cover this position and take my hat out of the ring. The medium term supply demand equation seems to point oil lower (especially as economic growth falters), but in the short term this one has been gyrating wildly.

Comments

[Barry Robbins]

I am shorting the market with SKF, SRS, and FXP (short China). But considering that some oil exporters are starting to consume more and more oil, I would never be short oil. I don't want to be short a vital commodity, that we are basically running out of. I have been buying the Canadian oil sands companies: CNQ, SU, ECA.

[naples]

what makes you think the big boys are not getting hit? you think the little guys are long and strong the market

tom kelly, anytime you want to go heads up on a big side on performance over the next year i am all for it... and i will collect!