To save time on this post: I’m just going to paste my conversation from an email to a friend about market direction and trading.  But as of today, I went from being almost net way long on Monday to net way short as the end of today where I sold nearly everything except a few long positions plus some naked puts in YUM at 33.  I am looking into getting defensive in health care or utilities but perhaps after the market pulls back a little bit.  I don’t see much value in stocks right now or maybe I’m just not looking hard enough for some good positions but I stand with a pretty short book right now.
EMAILS:

On Wed, Jul 15, 2009 at 4:12 PM, MISTER BULL wrote:

All luck buddy.  But I have gotten really short after today so you might be able to get everything back so no worries but patience is kinda key in everything now.

Here’s a few things that I go by:

1. Always hedge – at least partially because hedging makes you think of the other scenario
2. Always buy or sell in lots because you can always average down or up on a trade – if it moves your way before you get your whole lot, it’s still profit.  Otherwise leg in.
3. Protect your profits.  I have a problem of letting my winners run still but I protect my profits first but if I had another source of income, I would probably let them run more but living on trading profits makes you a bit conservative.

But let’s hope of the reversion to the mean…I mean but my expectations are this: that for GOOG, BAC earnings that the market either doesn’t move or moves down.  Just profit taking especially on options Friday!!!

On Wed, Jul 15, 2009 at 3:16 PM, XXXX > wrote:
Good call man.

On Thu, Jul 9, 2009 at 5:12 PM, MISTER BULL > wrote:
Hhahaaha….not eating is hard but trading is just challenging.

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