OT Internut shorts
I shorted AMZN, LCOS, XCIT and particularly DCLK last July and August with great success. My annual portfolio gain was well over 200% in August. I got to thinking I was pretty good.
When the nets exploded again in November, I thought to myself - been there, done that, I know this drill. Well, I got my clock cleaned in a New York minute. I didn't realize that 1) the stocks had become even more volatile than they were in the summer and 2) the sentiment was to move them up. I also violated my own rule of not taking home any internet shorts overnite. On one morning in mid-November I had about 4300 shares of ELNK, YHOO, LCOS, XCIT, and SEEK short when they all gapped-up by huge amounts. Instead of covering and eating the loss, I Martindaled my shorts. Can you say "Goodbye Lincoln Navigator!" Within a week, I pretty much lost all of my year-to-date gains. My confidence was so shaken, I did not trade for about three weeks (Plus, my wife wisely did not let me alone with a computer!)
I think the nets will again be good shorts, but I won't be near them until the sentiment clearly has shifted. |
