Bookkeeping: Closing Gmarket (GMKT) Short

Submitted By Trader Mark
I have been attempting to liquidate my Gmarket (vest.com/quote/GMKT">GMKT) short the past 3 sessions in pieces, partly for mechanical reasons and partly for it's hit my stop loss area. The way these online tracking systems work is for every trade in the "real world" they take a portion (something 5% sometimes 10%) and apply that to the tracking system. So low volume stocks are very difficult to build positions in or trade around. When I used to follow Gmarket closely 2006-2007 this stock routinely traded 300-500K shares a day with many days >1 million. Yesterday it traded 25,200 shares and thus far today 11,000. Yikes.

So getting out of a 2500 share position when you are only getting a fraction of the "real time" volume is a monster. I've been selling 500 lots every 4-5 hours the past 3 trading sessions - just impossible to work with such a low volume mechanically in Investopedia.com. Nor is it something (at that volume) I could do in a mutual fund.

I shorted in the $14.80 area [Feb 2: Bookeeping - Shorting Gmarket] with a 3.1% stake and have been covering $15.10 to $15.40 in bits and pieces. I had written my stop loss area was $15.35 but with the low volume my limit order to get rid of the entire position was not filling. So I'm down to my last 500 shares which I hope to get rid of by the end of the day. Intraday the stock has held its 50 day exponential moving average of $15 each of the past 4 days so the strength is pretty solid (that said, with no real volume who can really tell?) and my original thesis of a quick reversal has not played out, so we'll take our 4% hit and exit stage right (albeit slowly)

EDIT 2:45 PM - last of position closed

*****

Thus far I have been messing with stocks that are actually quite strong (gapping up on good news) to short. The reason is the ideas I want to focus on for fundamental reasons have been in constant free fall and I prefer shorting those names when they rebound rather in the middle of a tailspin; since I fear a reversal (the most beaten down stocks have a nasty habit of a +30% day when you least expect it). So it's been a less than premium strategy on the short side although this is only the 2nd loser trade (the other being Goldman when the bad bank news came out)

I'm flattish on the 3 remaining major short positions - trading around them a bit but I was hoping some of these casinos, retailers, financials, or other consumer discretionary stocks would pop. I missed a chance at some individual REITs last week - I went with the index instead which worked out very well but the individual names in my watch list have fallen twice as much. On the next rally I am going to try to focus on 1-2 office REITs, and 1-2 mall REITs and exchange it for the general REIT index short. The list of candidates is immense so we'll see when we get there. (if they bounce)

Anyhow, in a blink of an eye we jumped from the "magnet" point of the past 3 weeks (S&P 820) to near the top end of our range. We have lemming risk tomorrow (oh my gosh we only lost 550K jobs instead of 625K jobs! celebrate! Buy stocks!) and then government risk hot and heavy next week. Just reading some comments online by some people who "trend trade" like me over longer periods of time - there is major frustration out there since the time frames are so short and reversals happen in hours or at most a few days. The 3-7 week time frame to hold anything seems an antique. Stylistically, this has not been "my type" of market for many many months - so just treading water until holding something for 2-3 months is not looked on as a sin.

By the way one of my outlier predictions for 2009 was a weekly jobless claim number of 725,000. We hit 626K today.... which is a record. My number is looking very plausible by this spring. But nevermind that - the government will save us with accounting rule changes. Problem solved. Buy buy buy.

Short Gmarket for a few more hours more in fund; no personal position

Did you like this article?

Login or register to post comments
Email this page
Reset vote
-2 points

Ball Gown Sweetheart Beaded

Submitted by han on Fri, 03/05/2010 - 7:15am.

Ball Gown Sweetheart Beaded Satin Wedding Dress Supp_6653 Ball Gown Satin Organdie Wedding Dress Supp_6629 Ball Gown Pleated Taffeta Wedding Dress Supp_6600 Ball Gown Multi-Layers Satin Wedding Dress Supp_6581 for Sale Ball Gown Sweetheart Applique Beaded Satin Wedding Dress Supp_6568 Ball Gown Sweetheart Taffeta Wedding Dress Supp_6530 for Sale A-line(Princess) Satin Wedding Dress EW20 Ball Gown Sweetheart Embroidery Satin Lace Wedding Dress Supp_6654 Ball Gown Strapless Satin Wedding Dress Supp_6482 Ball Gown Sweetheart Taffeta Tulle Wedding Dress Supp_6088 Ball Gown Satin Wedding Dress Supp_6065 Ball Gown Satin Wedding Dress Supp_6063 for Sale Ball Gown Organdie Lace Wedding Dress E45

Porsche Design watches at

Submitted by ugg mbt on Tue, 02/23/2010 - 1:41pm.

Porsche Design watches at Watch Click,wholesale Burberry Handbags,wholesale rolex watches,Order for Porsche Design Dashboard,wholesale Nike Shox Shoes,mbt shoes,wholesale Dolce Gabbana Handbags,wholesale Louis Vuitton Handbags,Porsche Design Flat Six Automatic Chronograph watches at discounted price,wholesale ed hardy,wholesale rolex watches,Cheap price, High Quality,porsche design watches,wholesale jordan shoes,nike air max 2009,Provide the best after-sales service!

This article is very good.

Submitted by cheapmbt on Sat, 02/20/2010 - 4:45am.

This article is very good. And I like you very much!
The author was too kind.
Thank author sharing.At this is once!
Nike shox cheap nike shox shoes cheap nike shox
Authentic Products nike shox shoes provides all kinds ofnike shox r4 and shox nike mens nike Shox R4.
nike shox NZ in high quality but lowest prices possible from USA.
kids nike shox and
nike shox monster run
nike shox turbo

nike shox r4 and nike shox r5
We frequently update the styles of kids nike shox flame so please check back to choose your favourite shoes.

Life lies in sports.The mbt shoes wants to offer you great comfort while you doing sports.cheap mbt shoes is on sale now.The mbt lami shoes,mbt m.walk shoes,mbt chapa shoes,mbt sport shoes, mbt anti and cheap the anti-shoe is a good mbt shoes for you.You can enjor yourself here,uk retail mbt, retail mbt shoes
mbt m.walk shoes green,mbt lami shoes black and chapa mbt shoes brich waiting for you.

chenli

If you are looking for the

Submitted by Ecboots on Fri, 02/19/2010 - 10:06pm.

If you are looking for the top boots such as timberland boots sale,christian louboutin shoes, uggs on sale,puma shoes ,high quality, Quick shipment,Lowest price and Good service. Many people care their health.To have a good MBT shoes, will help reduce the anxious.when you see mbt shoes sale, you can find timberland boots sale, christian louboutin sale and puma shoes sale, no matter which you like, there are some other styles, like timberland 6 inch boots, ugg bailey button,ugg argyle knit boots,timberland boots mens,timberland roll top boots, mbt lami shoes.these shoes make you so fashion in cold winter. Also,you can take a look the designer handbags,such as gucci handbags,chanel handbags, Louis Vuitton Handbags and so on.

Original Christian Louboutin

Submitted by fanren on Thu, 02/04/2010 - 1:17pm.

Original Christian Louboutin shoes are much expensive to most women. Women who want to express their status or show off their wealth can wear their favorite replica christian louboutin leather boots.Synonymous with class and style, these buy christian louboutin shoes are being preferred by women across the globe. Acting as a true companion, these replica christian louboutin cork shoe sale not only hold your essentials carefully, but also reflect your personality in a unique way。discount Mbt Shoes, shoe can walk on the snow in recent years， Then i heard about discount mbt shoes wholesale, actually, it’s my first time heard about them, they were described to me as shoes with curved bottoms that help tone muscles and contribute to weight lose。Based on a true story north face wholesale jackets isn’t something to be taken lightly