Bookkeeping: More Rebuilding of Short Exposure

Submitted By Trader Mark
Shorts are hurting today that is for sure, but the more bullish the crowd is getting the more I want to begin building on the short side. There is a lot of recency bias in this market... as I scan the internets the biggest fear has changed from losing money TO missing this great move.

As always we are incremental in our approach, layering in and out of position so while yesterday's short additions [Apr 1: Bookkeeping - Adding to Shorts] exploded in our face we have had many wins on this side of the ledger and will in the future. They don't always work out right away hence the gradual building and exiting of positions. Again I am still looking for upside to S&P 870 but the higher we go the more we need to become balanced between long and short since the risk/reward changes each stair step higher.

There were 2 names I mentioned yesterday I wanted to see moves up in to add to or begin a position - both are fulfilling this wish.

First, we are starting a new short in SL Green (SLG) which is office REIT exposure, much of it in NYC. As I wrote I did not want to add to it yesterday (it bottomed near $10) and now its over $12... thats how quickly these things can singe you. I only started with a 1.2% stake because this is part of a basket (now of 5 names) in the REIT business and I have a pretty hefty exposure overall.

Prudential (PRU) is like a penny stock nowadays - it moves 15% almost every day. I had wanted to see it pop some to add short exposure so we are now in the $22.50s. If it gets north of $23 and starts to really run, I'll cover a good portion of the position and wait for a better opportunity. This one is very tricky because it keeps popping over and then below its 50 day moving average - hence I am willing to change my mind quickly if it goes against me.

Next are 2 names which have shot the lights out, I added to ProLogis (PLD) yesterday and it still is running - so I am adding yet another layer today. I love this set up on the short side as it has topped out in the $7.60s multiple times this past month, and also has the 50 day moving average around $7.75. So it clearly shows the place to stop out of.

Wynn Resorts (WYNN) is flying due to the strength of some of its lower quality peers - Las Vegas Sands (LVS) and MGM (MGM) - as we said earlier today when the bull gets roaring he runs into the most speculative stuff. And this group tends to trade together... Both LVS and MGM are now sub $5 stocks. Wynn is also a fun set up as it gapped up today and is making a run for its 50 day moving average of $26 which it will probably get to later today as it squeezes shorts in a death grip. (as I type this it jumped from $25 to $26 in a matter of 10 minutes so there ya go) I am adding here ... this is short squeeze 101. I am making Wynn a >3% stake.

I added more short to positions in American Express (AXP), Capital One Financial (COF)

Not necessarily looking for these to work out today since the condition of the indexes are so bullish, but over the next 2-4 days... hopefully I am not squeezed out of them by then.

Short all names mentioned except MGM, LVS in fund; short Wynn Resorts, ProLogis and SL Green in personal account

Did you like this article?

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

0332Adidas Shoes Sale with

Submitted by icecream on Sun, 02/28/2010 - 1:01am.

0332Adidas Shoes Sale with superior quality but reasonable price.From Adidas Skateto Adidas Superstar Shoes,Adidas Samba,Adidas Basketball Shoes,Adidas Originals always make people satisfactory.We also offer all kinds Nike Air Max:Air Max 2009,Nike Air Max Ltd,Air Max 2003.Now,ugg boots on sale,the famous is ugg classic cardy boots and UGG bailey button.

E-team008 Your insights are

Submitted by max007 on Fri, 02/26/2010 - 8:50am.

E-team008

Your insights are unique! I am so admire you! air max Love plays a pivotal role on out life. lady gaga headphonesLove makes you feel wanted. heartbeats by lady gagaWithout love a person could go hayward and also become cruel and ferocious.beats by dr dre headphonesIn the early stage of our life, air max ltdour parents are the ones who shower us with unconditional love and care,dr. dre headphonesthey teach us about what is right and wrong,nike air max 2 good and bad. nike air maxBut we always tend to take this for granted.adidas originals shoes It is only after marriage and having kids that a person understands and becomes sensitive to others feelings. adidas superstar shoes Kids make a person responsible and mature and help us to understand life better.adidas classic shoes

E-team006 There is an

Submitted by max007 on Tue, 02/23/2010 - 9:25am.

E-team006 There is an immutablenike airmax conflict at work in life and in business, nike air max 360a constant battle between peace and chaos. nike dunks sb Nike Running ShoesNeither can be mastered,nike dunks but both can be influenced. nike sb dunksHow you go about that is the key to success.nike zoomWe wanted Nike to be the nike air forceworld's best sports and fitness company.puma speed Cat Once you say that, you have a focus. nike air maxYou don't end up making wing tips or sponsoring the next Rolling Stones world tour.nike shox r4. Thanks for sharing space.
Michael Jordan and Tiger Woods nike dunk highare really part of a very big advertising program,nike dunk low and the fact that they make so much money is nike air force 1because the markets have dictated that they get that money,nike shox shoes and the fact that they endorse our products allows us to sell more products adidas 35th anniversaryand create more jobs.air force onesThe trouble in America is not that we are making too many mistakes, adidas classic shoesbut that we are making too few.cheap nike shoesMy job is to listen to ideas, adidas running shoesmaybe cook up a few of my own, air max 360and make decisions based on what's goodcheap nike shox for the shareholders and for the company.nike air max 2009. Thanks for sharing space.

Shop online for authentic

Submitted by ugg mbt on Sun, 02/21/2010 - 11:37am.

Shop online for authentic luxury Porsche Design Watches,wholesale Burberry Handbags,wholesale rolex watches,Accessories including PTC 911,wholesale Nike Shox Shoes,mbt shoes,wholesale Dolce Gabbana Handbags,wholesale Louis Vuitton Handbags,Flat Six,wholesale ed hardy,wholesale rolex watches,Indicator at our website,porsche design watches,wholesale jordan shoes,nike air max 2009,The biggest brand discount website!

If you are looking for the

Submitted by Ecboots on Fri, 02/19/2010 - 8:52pm.

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.

puma shoes |puma speed

Submitted by xuxiangfei on Thu, 02/04/2010 - 12:00am.

housework every moment,MBT

Submitted by erye on Wed, 02/03/2010 - 12:25am.

housework every moment,MBT is mbt lami a training equipment.their full commitmen.mbt walking shoes Size Chart to get your correct size New Products Coming Here Soon!mbt shoes more discount mbt mbt salesshoes here!will.mbt lami Follow these specially designed fitting facts when purchasing a new pair of at mbt m walk.

Christian Louboutin Sale

Submitted by fan on Sat, 01/30/2010 - 2:16am.

Christian Louboutin Sale

As the climate is colder and colder, many more warm boots fight against cold. Christian Louboutin Boots avariable in worldwide, have become femininity, hight quality and nice design for women. So Christian Louboutin boots are very popular. Getting a pair of Christian Louboutin that is dream of every girl.
Christian Louboutin Shoes have peep toe, signature red leather sole will help you show your taste. They are sexy, gorgeous and fun. The designers ' national spirit, is " make shoes that are like jewels" and each unique design demonstrates an unparalleled degree of quality and a born sultriness. Christian Louboutin Shoes desined with leather lining,round toe, concealed platform,hidden heel and signature red sole,which will bring much confidence and comfort and make you more beautiful.
However, if you purchase online, you will find a couple of Christian Louboutin begins at a fraction of the price of the originally price, you should be aware that buy Christian Louboutin online can save your money. One began the discount Christian Louboutin and is payment have been offered in goodugg.net store.
Look at the Christian Louboutin! What a slender and graceful line! Ladies are crazy about it. If you are engaged in the vogue or you want keep the same pace with the trend. Christian Louboutin Sale could be your best choice.

This article is very good.

Submitted by cheapmbt on Thu, 01/28/2010 - 2:13am.

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
Authentic Products nike shox shoes provides all kinds of shox nike .
nike shox NZ in high quality but lowest prices possible from USA.
kids nike shox and
nike shox monster run
nike shox turbo