Monday, April 6, 2009

Current portfolio and market commentary

Longs: ORH, HES, DBC, BPSG, CAVM, MA

Shorts: ACGL, BMS, DPL

Currently as is evident by my holdings I am leaning towards the bullish side, my shorts haven't been doing much lately but my longs have more than made up for it. If we get more downside to the market in the coming days I will be looking to reload on some longs. Long run I am bearish simply because there is just too much bad news out there and Geithner can only cover them up for so long before it blows up in this face. Getting "rid" of toxic assets...they're not getting rid of it they are only transferring it form the banks to the government. That means the government is in even more rough shape that before and the market will ultimately follow the government. And no need to mention the trllions then have been pumping into the economy my printing money out of thin air. It will come back to bite them in the ass.

If anyone is thinking about going long the banks here is a good read: http://www.time.com/time/business/article/0,8599,1888664,00.html

Here is the chart of a short position I entered today in ACGL, at good resistance around the 58 level which is alos a 38.2% retracement from the year highs.

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