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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: TH who wrote (252531)6/7/2010 6:19:25 PM
From: PerspectiveRead Replies (2) of 306849
 
Good job on the positioning so far! I'm envious. I've been adding, but I remain stuck at only about 40% short. Since I swore off options a while ago, I've been selling gradually for the past couple of weeks. However, I expect something akin to the 2000 experience - which bounced around for a few months before getting down to business. It looks like there may not be as much delay getting things in motion this time, however.

I'll be much better off if I can ditch a couple of long-side hedges I've held forever. I keep expecting a bigger rally than just a one-day wonder, figuring that's the odds bet, but that darn hedge just eats at my short profits. Ideally, we'd break the February lows for a short time, then recover them in a multi-week rally. Keeping my fingers crossed for that. That would be the time to ditch remaining longs.

It's pretty interesting that the flash crash sellers are now in the money; perhaps they really knew something after all.

`BC
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