Now this is the fear I said a few weeks ago we need - totally indiscreminite selling.
I am using 2 proxies - Google (GOOG) and the S&P 500. When the former fills its gap (remember I said it was an excellent short in the $540s range) at $460, or the S&P 500 falls to 1170 we'll deploy more to the long side. S&P 1200 will be a psychological level that should provide some interim support but it's just one of those "round numbers" that doesn't mean much in reality. S&P 1170 takes us back to October 2005 levels; and kills off nearly 3 years of gains for all those index fund fans. I'm remaining patient so I have some cash to deploy once the turn really happens - keeping the lessons of January 2008 in mind. We have about 14% short exposure (I added a bit on that nonsense spike yesterday morning) - I'll liquidate that and start to turn more long once we start to see those washouts named above.
I'm looking to add to either our best of breed names at the top of the portfolio or some of those Haynesville natural gas plays when/if we reach either of these levels. I might even go and get some Google (GOOG) back into the portfolio @ $460. I guess seeing the Haynesville natural gas plays fall hard would be a "3rd tell" as well. [Jul 9: Haynesville Natural Gas Plays Refuse to Sell Off]
The inability to short individual names is simply killing me - so many opportunities we have named but cannot take advantage of. :)
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