A short update

Because of time constraints I will only post a short update today. As I posted on Twitter below this morning:

I went short the S&P Futures when I woke up because they looked as awake as I was posting a few point gains in the morning. For us to have a real bottom we need to see some more panic and this is was not it.

Once the market opened I switched to shorting the S&P 500 tracking stock with the symbol SPY in order to be able to balance my portfolio a bit better than I can do with futures because of the contract sizes. When I used to manage money I bought or sold up to 500 contracts of the S&P 500 mini futures at a clip representing a trade value of $45 million in each trade, this is not the case now though for my private portfolio and thus the SPY give me more flexibility.

The market continued to drop but I did not see any panic in the marketplace so instead of covering my short for a nice profit during the midday in the US I kept it but instead bought some shares of Google (GOOG) to build my position there, I also added to my Nike (NKE) position.

The market then bounced and before the close of the day I shorted some more SPY to protect me against the Apple report (AAPL) which was due after the close and I am long a little AAPL. Apple was disappointing and tumbled 6 % in the afterhours market and tomorrow it set to possibly be a very negative day and I might end up covering some of my short SPY.

Apple is not very exciting and there is no catalyst for the shares but it is cheap.

Remember, we need more pain in the market for it to bottom out but the US economy shows strong signs with good numbers from Caterpillar (CAT) this morning!

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