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Pastimes : The Philosophical Porch -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (511)	3/17/2006 10:32:08 AM
From: Rarebird	Respond to of 26251

Yesterday, I sold UIPIX at $15.55 for a loss of 4%. UIPIX: "The ProFunds UltraShort Mid-Cap Fund seeks investment results, before fees and expenses, that correspond to twice the inverse of the performance of the S&P Mid-Cap 400 Index." Although I remain fundamentally bearish in many ways, I must respect the fact that the Dow, S@P 500, Dow Transports, NYSE Composite Index, Russell 2000 and $MID continue to hit new highs on a regular basis. Whether I like it or not, this is a Bull market till proven otherwise. This market is very overbought. However, to wait for a down day to cover could be very dangerous here. Hope has no value in this realm. I have no intention of turning a small loss into a large one. I was somewhat cushioned here since I'm long FAIRX, LKSCX and PENNX. More commentary forthcoming.

To: Rarebird who wrote (511)	3/17/2006 11:29:26 AM
From: Rarebird	Respond to of 26251

Yesterday, I sold part of my position in UCPIX at $15.93 for a loss of $6.75%. UCPIX: "The ProFunds UltraShort Small-Cap Fund seeks investment results, before fees and expenses, that correspond to 200% the inverse of the Russell 2000 Index." My portfolio is currently neither net short nor net long. If the funds I own outperform my position in UCPIX, I will profit modestly. If not, the opposite will occur modestly. I have an extremely high cash position here. My market position is now neutral short term. I'm looking for a short term pull back to around S@P 1290-1295 to invest 2/3's of my portfolio on the long side and sell the rest of UCPIX. The purpose of keeping 1/3 of my portfolio in cash is for day trading/swing trading and to make sure I have enough capital available to hedge my portfolio if need be. The Bear argument makes a lot of sense in some ways. One of the major problems with that argument, however, is that too many people believe in it. As I've said recently, Life is a long lesson in humility. Humility incorporates error and falsehood as a feature of Truth. Stubborness is costly.