Net Short

I have sold down my shares in Exelon for a small gain. The position has been a disappointment as the shares have gained 1%, while the market is up 4% in the same period. I still believe the shares are a value and will look to buy again at lower prices. The sale makes me slightly net short.


Anonymous said...

Where do you see the top now?

I am feeling 1150. Seriously.

To me that looks like a great top.

Tsachy Mishal said...

I think we are close to "a top". I'm not sure if it will be "the top" or a great top. But I believe it should mark the top for the next few weeks.

Anonymous said...

So what is your number for the top?

Is it here? Is it 1120? 1150?

My question is, now that we have no resistance, the economic numbers are not that bad, what's to say that the mkt has to roll here?

Japan totally blew away their gdp numbers.

How can the dollar expect to strenghthen given we are in a record deficit with no signs of slowing down.

PJ said...

We are in an extended topping phase which could turn over any time, but conceivably could last until January. After all, the Fed will still be buying $100 bn of risk assets per month through then, and the Treasury has $200 bn in the TARP slush fund with which to trade risk assets. These injections of "liquidity" will help support the market against deteriorating economic fundamentals and overbought private investors.

But it looks like 2010 will be a down year for government stimulus, and so everything will be aligned for the bears.

Tsachy Mishal said...

I think the rally is on its last legs so Ill go with 1120 as my best guess.