Adding to Perfect World in an Imperfect Market

This market is so strange. A slow motion train wreck that will never reach a crescendo. Half our positions are actually up, but the half that are down are taking a beating in the back alley. I'd actually prefer the market to simply give up in the last hour as people leave to go to the Hamptons. Death by a thousand cuts is just not working for me.

Anyhow, I am loving the action of Perfect World (PWRD), so  I'm adding another layer on top of what we have. We added a bit Tuesday as well. The last 4 days it has been holding up like a champ, and we love this sort of technical strength - you'd think they own a pawn shop in the US or something. It remains dirt cheap at 17x forward earnings for double that amount of growth. This is a chart begging to break out, if the market would stay flat for 3-4 days. It is back up to 1.6% of portfolio and I'd add more but cash is down to vapors.

We are now down to 0% cash. We either have Ultrashorts or long positions. I don't want to liquidate the remaining Ultrashorts (despite seeing a ton of names I want to add to) until/if/when we have that last traumatic selling event OR the market turns on a dime. I'd have to see S&P 1275+ to be convinced. In either scenario (pukey type selloff or reversal past 1275)--> I am going to actually turn the key and become, for a short time at least, a 100% long mutual fund - and see how the other half lives (ok it's not actually half, it's how the other 99.9% live). With my luck, the moment I did that, the next day we'd have a Black Swan Event and have a repeat of Black Monday, 1987.

I want to add one of these darn pawn shops but they refuse to fall down. Very strange action considering how strong the government reports show the economy is. So either their charts are lying to me, or the government reports are. Hmmm.... ?

[May 15: New Position Started in Perfect World]

Disclosure: Long Perfect World in fund and personal account