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SharePlanner (< 20)

My Approach Right Now to Trading and Shorting



May 20, 2010 – Comments (2) | RELATED TICKERS: BEZ.DL2 , NATI , E

These past two weeks have seen some of the best trading gains in my life time. My short positions have performed admirably well in this current market. As of this writing, my portfolio is 69% short still, and 31% in cash. I took profits on my large stake in ENI SPA (E) for a 9.5% gain. I still have positions in Abiomed (ABMD), National Instruments (NATI), and Baldor Electric (BEZ) that I am strongly considering closing out before the end of the day, despite them all being just shy of my target prices.The reason being, for me not waiting for the target prices to hit is because when considering the risk/reward of the market in terms of oversold/overbought and how much I stand to lose if the market bounces from here, versus how close I am to my target prices (meaning very little left to gain in additional profits), it behooves me to close out those particular positions.

Update: Just had my target in BEZ hit at 32.92, so I'm out there as well leaving me 61% Short and 39% Cash for a 12.7% gain.

I am truely hoping for total capitulation today, whether we get that or not, is anyone's guess, but it we do, I shouldn't have much of a problem hitting my targets across the board. I'm seeing where a lot of my colleagues are building up some long positions for the obvious bounce that is likely to come in the market. I'm not sure whether I'll be joining in with them on that speculative trade, though I did do that the Friday after the mythical "Fat-Finger-Flash-Crash", held over the weekend, and what I got was a handsome reward. Still, I am more inclined to play the bounce on Friday and hold over the weekend, because that gives the world governments a few days to put together some meaningless plan to fix the market turmoil, that will result in nothing more than a temporary feel-good "Flash-Rally."

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2 Comments – Post Your Own

#1) On May 20, 2010 at 1:09 PM, IIcx (< 20) wrote:

"I am truely hoping for total capitulation today"

 Woot, watch for the short squeeze tomorrow ;) 

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#2) On May 20, 2010 at 4:44 PM, SharePlanner (< 20) wrote:

llcx - got out of all my short positions at the close today - 100% cash!

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