Memorial day weekend is upon us and hopefully most of you will be able to enjoy the nice long weekend. Serious traders are spending part of this weekend studying strategy, reading books, and plotting their approach to next week's trading action.
Anyone who follows my posts on Twitter understands that I am currently mostly CASH, and then short the rest. I will not buy a stock in a market that is in correction. It appears this correction may actually turn into a bear market (down 20% or more) sometime this summer, but time will tell and we need to keep our eyes on the market every day.
Anyone wondering how my portfolio has done in the market, let me just starting tracking it for you here. So far in May we are beating the S&P 500 and DJIA by 7% and the Nasdaq by 8%.
Here's a look at my current portfolio heading into next week (subject to change over the weekend):
59% CASH - for reasons stated above, market is choppy and in correction.
Short the Euro via $EUO. We have done very well with this fund, delivering a 2X return on cash invested.
Short oil via $SCO. This fund delivers 2X returns. There is nowhere for oil to go but down due to the current global economy. There could be a short term blip up in oil prices because of Iran but that would be short lived.
Small short on the Russell via $TZA. This is one of the weakest performing indexes when the market goes down.
Short F5 Networks $FFIV. Institutional investors are dumping this stock which means it will continue to go down.
Short JP Morgan Chase $JPM. So many reasons to be short this stock. Heaving losses trading, trying to hedge their risk against other, UNDISCLOSED positions. The stock could not break 34 last week which is another bad sign.
More later, please stay tuned.
Additional disclosure: I am short JPM and FFIV