Friday, September 11, 2009

Trade 72, 73, 80 - Financial shorts

Out prematurely on the 3 shorts, looking like they may continue on the unreasonable, but completely probable upswing.

Still no strong conviction on the upswing - I believe the best move is to wait for the SP500 to fall before committing ot the shorts.

Have to stop trying to 'predict' the market as opposed to 'reading' the market - need to setup trades as the information presents itself.

This is at times somewhat contradictory to what is required out of my 'long/short' macro strategy - the daily moves of the market will reveal opposite moves to what my opinion of the general 'themes' may be. However, to stay confident in my overall strategy, I have decided to let the daily moves be the only catalyst for setting up trades consistent with macro themes, to allow myself minimum psychological pain when losses (they will happen) occur.

Losses:
Trade 72 ANZ: -86.92
Trade 73 WBC: -43.59
Trade 80 CBA: -119.34

However, I still hold SBM (gold) and FGL long, and they were up over $300 for the week, so overall my week last week was still slightly positive.

However, I still need more trade ideas in the coming week to keep my P&L diversified.