Wednesday, September 26, 2012

Finally Getting Defensive

After being bullish most of the last two quarters, I have been offloading most of my leveraged long positions.  I booked gains in Qantas, Goldman Sachs, Nabors, Chesapeake, KB homes and taking only a loss in FMG. It's been a good run the past quarter and will lighten up for the rest of the month.  I'm still trying to halve my large position in SBT, been holding onto this dog position for 3 years.

I took shorts in AAPL and CSGP last night.

I did a simple screen on US equities with the intent on finding some shorts last night to see the following CSGP stock.  A fairly standard consolidation that looks like it could go either way, however the fundamentals look fairly overextended; and deteriorating.  The stock may have benefited from the real estate momentum, and may get hit hard as commercial real estate may lag the housing real estate performance.

I shorted CSGP at 81.28, with stops above 85.

AAPL - despite being fairly valued on a fundamental level; earnings uncertainty now seems clearly questionable given the increasing competition in the smartphone and tablet space.  Whilst we have seen a huge response from the 5 million units sold for the iphone 5 opening; if we see a bad reception in this phone or a huge release from the next Samsung line, we may see volatile earnings which may see the stock retest 600.

I shorted AAPL at 687.18