hey denn,
here's my story:
after being an early aggressive net bull, a few years ago, and doing (um) very very well, I went bearish on the Nas in December -- during the parabola! <g>.
naturally, my QQQ short pounded me day after day after day. or, more properly: POUNDED ME DAY AFTER DAY! <g>.
so finally, I said "F@#$ This!." I didn't want to cover my short, so I went through the companies in the QQQ and bought (in size) the "real" companies with "real" revenues and (somewhat, anyway) reasonable PE's. In other words, no Yahoo's, Amazon's, QCOM's, etc.
at the moment, the "hedge companies" consist of: CSCO, SBUX, COMS, LVLT, CPWR, MSFT, QTRN, WCOM, LLTC, INTC, SUNW(a smidge), WCII, ADBE, AMGN, DLTR, GBLX, APCC, TLAB, BGEN, AAPL, PAYX, NXTL AND PSFT.
the bigger idea, I guess, is that "these are companies that I'd be happy to own for the next few years" -- as opposed to my earlier, "position trading" habits.
if the Naz and QQQ swoon, I cover the short. If we have one more moon-shot, I'll average up on my longs and -- at some point -- take the money.
will it work? is this a good idea? Beats me!!! So far, so good...
It's fun, though :-)
Best,
doug |
