Sunday, December 07, 2008

Got Squeezed

Since last Tuesday morning all I have been doing is losing money.

Got crushed with my short Treasury position - long TBT:

Got crushed with my long oil position - long DXO:

And got crushed buying my Ultrashorts in Real Estate and Financials - SRS and SKF:

Click any of those 5-day charts to enlarge.

Fortunately, as I mentioned in my last trading post, I nimbly got out of SKF at 162.90.

The only problem was I bought it back as it came in. At 151.07, 142.24, 132.68, and then a chunk more near the close on Friday at 118.72.

I reloaded on SRS as it fell also. After buying at 128.00 on Monday, I bit again at 123.00, 117.04, 112.10, and I grabbed a chunk more near the Friday close as well, at 98.40.

I also bought more TBT at 44.63 and 42.57.

And more DXO at 2.68.

Wells Fargo didn't help much either - rallying 6.5 points on the week. I bought a handful of December 25 puts at 1.25 on Friday - to add to my portfolio of April 30s and January 30s, puts.

One last buy was a small one, of EEV at 71.74. That's the Ultrashort Emerging Markets ETF.

I expect the market to rally on Monday on the BS Big Auto *bailout*. We'll see if it holds.

There's definitely a short squeeze going on. I just pray it's nothing like the last one in September.

All of my positions are getting to be of *good size*. And I am comfortable holding all of them over the next few months - if I can.


Anonymous said...

you must have loved today's market... I don't think this will last much longer (and the down side will continue).

Mark said...

Long time listener, first time caller...Are you staying long with DXO? Or do you have a target sell price? I'll take my answer off the air