Thursday, April 12, 2007

Good Morning World

Reducing My Exposure- and I'm not talking about getting rid of my old boxer shorts which are riddled with holes. I'm talking about selling positions to allow me to weather anymore downside in this market. To that end, I sold 500 SMSI @ 18.85.

You see, when the bears start coming out of their caves growling and mumbling things like "secular bear market," it typically means they were late to the recent downside party, and will begin selling in earnest, the same time when the buyers step in. And once again, the bears will be wrong. However, the bears cannot always be wrong, and just in case this is their time to shine, I want to have raised lots of cash.

Although I did not look at any index charts last night, I do have a gut feeling that the recent downside action is simply alleviating an overbought condition. The indexes will find support here shortly, and the party for the longs will resume. Should this occur, I'll put my 40% cash to good use.

SWHC- after flirting with crashing through 14 this morning, SWHC has found a big buyer, and is zooming. I can't find any news on why it is moving.

GIGM, STKL, and MVIS are all catching bids. I have loaded up on STKL, and am looking for a big push sometime soon.

***Update*** In an effort to punk myself, I have rebought SMSI 500 @ 19.25. This is likely a diptarded move, along the lines of a revenge trade, but I couldn't stand to see the volume pouring into the stock without me being along for the ride. Did I buy the top? Stay tuned!

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