Jay, thanks for your reply. It fills in the picture a lot for me. There were two questions I forgot to put in:
1) What about chinese stocks?
2) What do you see as the best play for returns right now.
On Chinese stocks, I bought some CHU and CHL some time ago and, fortunately, sold in time for a little gain. If there is tremendous growth in China, you would think there would be good gains in some of the Chinese stocks. It kind of scares me, though, because I wonder if the rules are as strict in China as the US. If not, it seems more likely for stocks to be manipulated.
It is hard for me to figure out if you are in or out of the market:
This is going to be so much fun, providing months of entertainment, and maybe life times of financial gain. Cash now is not the king but everything.
On the one hand, if you are out of the market, then you would not be making life times of financial gain. If you are in the market (even short), then cash would not be your position. So I am not sure where you are (maybe both?).
Personally, I still think there will be recovery (even though we don't see it right now). The FED has the power, means and will to make it happen so there is some truth to the big momo "don't fight the FED". IMHO, optics and broadband semis are one of the few areas that have the potential for rapid growth. So I have things like AMCC, JDSU etc with puts under them. This way I don't lose much as the market tanks (like now) and I am there when it turns up. I lose the premium is all. I have to decide what to do at next weeks expriation. I guess I will either buy more puts or sell everything and buy great leap calls. What do you think? |
