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Strategies & Market Trends : Free Float Trading/ Portfolio Development/ Index Stategies -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (1733)	3/20/2007 5:57:46 PM
From: dvdw©	Respond to of 3821

Replacement for last post; Today was the opposite of yesterday, when it seemed all orders were disconnected from precious supply. Today the short covering was connecting and perhaps that signals a trend change. I was thinking about the Febr 28th and March 1st market data which caused so much price damage on so little activity, i am wondering whether these anomalistic trading days will somehow show up in the coming Short interest report? We have an awful lot of locked up positions, investors did a very good job of moving inventory to the sidelines and it shows in the daily volume. lock up is marked by low volume, when Investors hold thier positions rejecting trade direction which is deterministicly systemic. I began doing some fractional deconstruction working the nearest to lows list. I find this rewarding when trend is whimsical, these new buys wont get rinsed as deep as others, and this meets our unit for dollars goals well. Fractional deconstruction means paying close attention to weightings, and taking as little as you can to cobble together units of underweights you've decided should be brought to average. Every single portfolio must have a "driver" who understands the importance of this issue; if you want to maximise return. Every portfolio needs diversification according to units per position. Setting what equal weight is allows you to practice disciplined fractional deconstruction. A stock trading at 3 with 1800 units is the same weight as 600 equal weight positions in the higher zones. Price points factor into weight. Grouped as we are, its very clear to see your portfolios organic character unfolding and hence awareness of all zones is imperative. last week my peripheral vision found an ideal stock for breakout trading a consolidation period at 30 bucks, I rarely do so but took a loss on a large unit position in a lower zone to fund the opening, its worked very well so far. Today I was moving down scale; dollars for units, and this should work very well as the lower price zones have some of the best values. Our gains are extraordinary across so many issues that taking losses fractionally now or anytime is a matter of judgement about the timing available to re weight, the key question becomes; can I manage the 30 day clock, in such a way that convinces me, that the rinse is needed enough; that NO News will come out before the deadline? If the answer is no, hold the loss. Right after earnings gives you the best time window to enable the loss to be re bought lower ahead of the Forward demand we stalk. Speaking for myself, I will no longer tie tax loss portfolio management to a single quarter but will actively judge these moves on a case by case basis with the determining factor being; best value today, which needs immediate attention. This will also provide currency for periods when the practice is uniformly applied. no one can criticize us for not being early enough to the party, we are always ahead of the curve, but in the course of these years the results are quite clear, as many of us are steeped in long term capital gains, position by position fretting about a single position of a well weighted portfolio losses all meaning. Its so counterproductive, our experience is clear...Mr Market has metrics and methods that Obfuscate.......most of us are beyond "not" understanding this. Rubik is on the clock right now, some CC's during this current season have been pure Rubiks......map your awareness of the intent of offered output, to the process of effective capital rotation using using any of the tools which best suits the particular situation. if any of this isnt clear, call in and we'll discuss it.