Asif Suria

Five Sectors To Consider Shorting

If you did not research by past trades, take a look at my current model portfolio or even the portfolio from November 2006 when I initiated four naked put options to hedge the long portion (not specific long stocks) of the portfolio. Two of those four puts (a trucking company YRC Worldwide and a homebuilder St Joe) are still in the portfolio wth gains of 111.43% and 161.54%.

www.sinletter.com/port...


www.sinletter.com/arch...

As for the "tech-stock" portfolio, I would hardly call a portfolio that contains an Israeli generic drug manufacturer (TEVA), a travel company (EPAX), an oil drilling company (DO), an entertainment company (BBI), an Indian auto company (TTM) and consumer non-discrenary companies (PG and UL) a "tech-stock" portfolio.

If using multiple naked put options, using selective short positions and diversifying long positions across asset classes and countries is not called hedging your risks, I have no idea what is.

Five Sectors To Consider Shorting

Since you seem to have done the research on my past trades, I would love for you to show me when and where I was "naked long the stock again in my model portfolio". As most of my subscribers know I have been nothing but bearish on Countrywide since 2006. When those options expired I suggested that my timing was a little unfortunate ( I *only* made a 66.67% gain in 6 months as a "couple of points" on a $2.46 put option works out to a tidy gain) and it may be a good idea to roll them into new put options. While all my current positions are listed in the model portfolio, every single trade done in the past is listed in the Historical Trades section of SINLetter.com

www.sinletter.com/hist...

Five Sectors To Consider Shorting

It looks like QID achieves its leveraged shorting of the Qs through swaps and options as you can see from its daily holdings here

www.proshares.com/fund...

You can find additional information from their prospectus here

media.proshares.biz/do...

The inverse correlation between QID and QQQQ is quite apparent when you look at the following one year chart comparing the two

finance.yahoo.com/char...;range=1y;compare=qqqq...

Similarly the inverse correlation between TWM and the Russell 2000 is quite apparent when you look at the following 6 month chart comparing the two

finance.yahoo.com/char...=^rut;range=6m;compare...

Five Sectors To Consider Shorting

It looks like QID achieves its leveraged shorting of the Qs through swaps and options as you can see from its daily holdings here

www.proshares.com/fund...

You can find additional information from their prospectus here

media.proshares.biz/do...

The inverse correlation between QID and QQQQ is quite apparent when you look at the following one year chart comparing the two

finance.yahoo.com/char...;range=1y;compare=qqqq...

Similarly the inverse correlation between TWM and the Russell 2000 is quite apparent when you look at the following 6 month chart comparing the two

finance.yahoo.com/char...=^rut;range=6m;compare...