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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bcrafty who wrote (54790)	2/27/2006 9:57:16 AM
From: Rarebird	Respond to of 110194

>>What are you short and what stops are you using?<< I'm short UIPIX (S@P 400 Midcap) and UCPIX (Russell 2000). The short positions were intitially initiated (2 weeks ago) as a pure defensive hedge against my longs so no stops were initially needed. However, I've recently taken some profits in my longs, so I am currently modestly net short. At this point, my portfolio will vary inversely anywhere from 1/4 to 1/2 the percentage gain/loss in the Russell 2000. However, I'm currently over 60% in cash (Money Market) and I intend to take more profits on the long side this week, the more the merrier, especially if these markets continue to rally. If the Nasdaq decisively took out 2330, I'd have no choice but to further hedge my hedge on the long side. I'd buy the BKX and wait for the turn. Ideally, I'd like to be 15%-20% net short come the middle of March.