Flight to Quality - My Shorts are Killing me!
It seems to me that we are beginning to see a shift in market sentiment. I read something on another blog that echoed my feeling that we are seeing a return to buying of higher quality stocks (CSCO, HPQ) and some selling off of the junkier ones (FNM, AIG).
The bad news for my CAPS portfolio at least is that some of the "junky" stocks (BTH, DDS, DTG) that I picked to underperform have been outperforming the market for the past 6 months leaving me with big red bloodstains.
Over the past few days I have been pulling off the bandages (ending my red picks) to stem the bleeding. It looks like it might be helping as my score is much more positive today!
We'll see - usually I am early with my calls. So watch for the shift to occur in a couple of weeks after more damage is done to my "shorts".