In light of this Wednesday morning’s commentary, a few emailers asked me were we stood after today’s action.
The short answer: We are now all cash. We have no positions long or short. We are actively looking for shorts.
I will post an update when we make a serious change in our tilt.
UPDATE: May 6, 2010 5:27am
Several readers wanted to know the reasoning behind this:
1) Greece/EU had nothing to do with our tactical rebalancing.
2) This was strictly a technical call — market internals, sentiment, duration of rally, volume were amongst the factors that came in.
3) This is not an end of primary trend expectation — rather, it is looking at the potential of a secondary trend.
4) Ideally, if we get lucky, we will see a rally over the next week, with deteriorating characteristics — that sets up a better entry for shorting new positions.
5) We had a very good Q1 with a handful of strong positions — EK, MGM NYT, THOR, C — so some of the thinking behind our move was locking in a profitable 1st half of the year. We can now look be very selective in identifying trading opportunities.
6) We are now concentrating on screening and identifying new short ideas . . .