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EnigmaDude (98.06)

Flight to Quality - My Shorts are Killing me!

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September 02, 2009 – Comments (2) | RELATED TICKERS: DTG , DDS , BTH

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".

2 Comments – Post Your Own

#1) On September 04, 2009 at 4:16 AM, puccini3005 (29.83) wrote:

enigma, I've had major damage from red thumbs too  (caps only, I don't short in RL).  Stocks that looked weak rocketing out of the depths along side their more worthy counterparts...  My biggest thorns - MIM, GET, RCNI, HOV, SPF.  I'm hanging on to them though.  In CAPs noone's going to call on me to cover, and I beleive the true colors will bleed through leading to more realistic valuations.  It already started with HOV and their TERRIBLE earnings release yesterday.  Plus, I've noticed that the "junky rockets" fall quickest during downward market corrections.  A few more big corrections like early this week might shake some nuts out of the tree...

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#2) On September 09, 2009 at 4:20 PM, EnigmaDude (98.06) wrote:

puccini,

Thanks for the comment and moreal support.  My score has been improving considerably since I ended my bad picks - the only one still hurting is KKD.  Next time the market is down I will end it since they just came out with a positive earnings report.  Heck - maybe I should consider buying a few shares!

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