A Short Opportunity in One of Our Holdings we Nailed
By:
TraderMark Thursday, September 18, 2008 10:06 AM
Well we nailed this call on Tuesday when we cut Alliance Data Systems (ADS) from 1.8% to 0.1% of portfolio
Actually that looks like a double top just north of $66 which is might be very ominous. I'm cutting back to
0.1% stake until further notice. Here is another easy short entry - short at $60, stop out at $62, cover at $52. Go long at $52? Hmmm... we'll check back in the days to come
Within 24 hours, i.e. yesterday, it went to $52.11 for the low of the day. Once more, these are the type of short opportunities I cannot take advantage of in the current environment but it would of provided us (we sold out at $60) a 13% gain in 1 day. This is part of the frustration ... one arm is tied behind the back in this sort of market. All these nice shorts we've called out over the past year+ would of buffered us very nicely in terms of performance.
This is why I am now typing out the thought process so you can at least see what we "could do" in a real fund versus now. But now that this gap is filled, I'm interested in buying.
Long Alliance Data Systems in fund; no personal position
Short Marketocracy.com for not allowing shorting of individual equities in long only accounts
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