Tuesday, February 12, 2008

Dealing with being right

Well market-wise, things are playing out exactly as I envisioned on Saturday: we're getting another low volume bounce on little news. That's ok, I guess.

Last week when I was in the hospital I had a couple of buy orders for SDS and QID in the event of something catastrophic occuring...of course I though I'd be aware/awake/near a computer/functional to change these orders as need be...be then last week I met Mr. Tree and everything changed, except those orders.

Yesterday I got stopped out of QID with a small loss, and today I expect to get stopped out of SDS with about a 2% loss on the position...not great, not tragic.

This week I'm going to go bullish as indicated by my system parameters, but not excessively so, because I think the real action is going to be the next downmove, not this upmove. But hopefully my one UWM position will help reduce the pain of the money coming out of bonds today.

Re: the bond portfolio, which is the goal of this account very soon- I was dissapointed by the distributions this month. Well think about it, bonds have been moving up, yields moving down, and the bond funds themselves have been overall profitable (possible exception of LQD), so counting the capital appreciation I guess they've been doing OK. But I'd rather have stable prices and big dividends, but so would everyone else, eh? Anyway my concept ultimately is to fashion the portfolio to 70%-80% income funds, 20%-30% either long or short the market as per my system. I think that could work rather well, as well as provide decent income.

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