Sunday, December 11, 2011

Week 49 Performance...expect more volatility

Another week of grinding along with everything based upon European decision makers.  Again I did not add any new positions this week as I worked on shoring up the watch list with the plan to start making some transactions when I can see further clarification in the markets which may or may nor come.  The next few weeks I would expect to become very volatile in both directions as mutual fund and hedge fund managers try to squeeze out positive gains while other people will look to dump stocks for tax purposes.  Throw in the uncertainty that continues to be Europe and retail sales being a bit beleaguered after the hot Black Friday weekend and you could have a very potent drink.

When you peel back the layers of the current performance what stands out to me is that of the 12 stock (or long) positions 8 are in the black (positive) while only 3 are in the red (negative).  The problem lies in the fact that the three losing positions make up a greater % of the stock portfolio.  The same can not be said of the option portfolio in which case I have made some bigger moves which have not gone in our direction.  However most of the options are longer dated so we have time to see how the story will actually play out.

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