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More from Gundlach at Ira Sohn: He suggests another contrarian pairs trade - Long Spain (EWP),...

More from Gundlach at Ira Sohn: He suggests another contrarian pairs trade - Long Spain (EWP), short SPY. One he mentioned a few weeks ago - long natural gas, short Apple is performing famously well. Believing the Fed isn't raising rates anytime soon, he suggests a leveraged long position in Libor.
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  • $vix
    , contributor
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    Hindsight is 20/20. Now Jeff's short is performing well. HOWEVER, Gundlach announced he was shorting aapl at the CFA San Diego forecast dinner. That was on 3/09/12. on the day he short the stock, aapl closed at 545.17. The stock never looked back from here. It exploded the following Monday and proceeded to rocket up to $644.
    In fact if you executed a short on aapl alongside Gundlach, you would have watched that short rise nearly $100.
    any prudent trader would have covered that short quite quickly. With the recent decline in aapl, Gundlach has broken even, unless he covered his initial short when he saw that he was grossly wrong and initiated a short position at a higher level. Amazing how these guys make so much money when they are wrong the majority of the time. Of course, everyone thinks he looks like a genius because he was short appl, but most did not know that he short it at the wrong time, literally to the precise day it took off like a rocket. He never could have gotten out of that position without a loss, until now and who would have known definitivley that aapl would fall to this level after continued releases of incredible earnings.
    16 May 2012, 04:06 PM Reply Like
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