Monday, December 22, 2008

I have no long positions anymore; Dec. 22, 2008

No time to go in great detail as I'm reconfiguring my strategy. The market has failed to rally as proposed for quite some time now. Today is a light volume day but the market suggests a rally but it keeps drifting lower. I don't like what the market is doing so I exited my long positions and am only modestly short various sector ETFs and the Nasdaq 100. I am still allowing for a sharp rally into the 950 area so my short positions are fairly small in preparation to reshort on rallies. A strong S&P break of 850 should eliminate most/all bullish possibilities in the short term.

To sum up, I'm now only short with modest positions on in preparation for a strong rally where I'll just add to my shorts. A strong break of 850 in the S&P should result in an accelerated decline and will cause me to pile on more short positions.

1 comment:

Michael K. said...

Do you think the rally at the end will continue into tomorrow? Or do you think the market is going to drop big tomorrow?