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01-07-10 Market Recap and Trading Plan

Thursday, January 7, 2010 
Writing this site helps me think. I must put together my thoughts, express them, be held accountable for them...that causes me to be firm in my thinking. I decided with the earnings report noise and the strange sector rotation today, especially away from tech...that I needed more cash. Raised another 5% cash, up to nearly 25%. If the reaction to the jobs report is great, we'll get a pop and a pull back. On that pullback I may add if the money rotation continues, to those that are attracting the money. Friday is a bad day to buy..sitting for 3 days to see if it was a good maybe I'll sit on that cash. Tomorrow will tell me.
The big question is whether it continues. If so, we need to add to JEF and HIG on the jigginess in prices after the jobs report. Stopped out of a lot of our tech, STX, RVBD are down to placeholders, NTAP is 1/4 position, SNDK added back 1/2 position, on AMSC and SBAC we have 1/8 positions...did not add after stops although they finished up. Feeling heavy so have lightened up.
CLF is down to 2/5 position...our full industrial/metals/energy/ag positions TCK, MOS, TIE, ANR, NE all held up and FWLT and BUCY made us some dinero.

Added bit of BG, MAS, MTW and F. Need more.

CHK is down to 1/2 and CSIQ got stopped again, we lost very little.

My most important position: CASH - @ 20%. Probably too low, we'll see tomorrow.
On balance, we get a "C-" on the day, after three As in a row. Many of our stocks were down and we were not...except the tech, SNDK and RVBD...need to learn patience on the buy back. Did 9 of 10 things right...but the tenth hurt us. Lesson noted.

Disclosure: Long all mentioned