HedgeFundLive.com — I could not hold my full position, I was able to hold enough such that the trading group was up 68,000 for the first 4 days of the month and I contributed my share. Though we had the right call for Friday, the short squeeze on Thursday jeopardized the month.
As I have said before, you cannot do today that which would risk your entire business tomorrow. I had a speaking engagement on Friday and missed all the fun. I would have had quite a nice day, as my style is to have sold all day into the weakness and algorithmically covered through out the last hour and a half, 2:30 – 4. But such is the life of a trader. I look forward to Monday, to buy the dips and to find further opportunities to short the rallies, cover and take limited overnight risk. This is the trade I will continue to look for, irrespective of the fact that the general trend in the market is up, for as long as the fed continues to fool the marketplace.
Over time I will be paid off and will eventually experience a mini flash crash day that will put many months to shame in one single day. It may take several weeks, but we are heading for a tipping point in the market place, in which one more test will be needed to believe that we are truly in a sustainable bull market and that repercussions of the financial crisis if not behind us, have at least all been identified.
I believe the shock to the system will be Bahrain. We are so focused on Libya, that the market and the media are overlooking the greatest concern. On Friday nearly 100,000 protestors demonstrated in Bahrain. But unlike Egypt and Libya, the US has actually openly supported the monarchy and what is an ambiguous offer from the monarchy to negotiate with protestors.
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