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Strategies & Market Trends : 50% Gains Investing

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To: Madharry who wrote (105448)11/5/2011 12:51:14 PM
From: chainikRead Replies (1) of 118717
 
The strength in financials is certainly a big positive. Small caps are also strong. Shanghai's chart looks encouraging (IMO this is the most important chart to watch). Russia is up almost 40% from October bottom. The risk trade is "on".

I went almost 100% long in October, and IMO it is unreasonable to stay very long now. Panic is gone, some numbers are starting to look fishy. "Hedge funds are underinvested; career risk will trigger a big Christmas rally" is now a common wisdom. Risk/reward is not as good as a month ago.

My wish is SPX 1320 this year. I'll flip to the short side if we get there. A drop in volatility and cheaper puts would be helpful.

I don't follow Greece, PIGS etc. IMO, it is noise irrelevant to trading.
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