Thursday, August 4, 2011


6:33 am (Hawaii) So, it's too late to get defensive, or is it?

What's working today? Off my Metals list 19% green, 81% red), it's ZSL (+9.6%), SCO (+8.7%), DUST (+8.4%), FAZ (+7.3%). The only non-bearish plays in green are GOLD (+3.8%) and GLL (+1.5%). DUST has appeal for me since it's the 2x bear ETF on gold miners. It would have really helped hedge my position in XG. Hindsight.

But if the global selloff today continues into tomorrow, there's no catalyst to buck the downtrend. All that remains is the probability of QE3, and most traders aren't expecting that until Bernanke goes to Jackson Hole. That's not for a few more weeks.

My Regular watch list is at a pathetic 9% green, 91% red. Only the bear plays are green. WNR is down 15.8%, AMRN is -13.3% and RBY is down 9.5%. WNR, as noted by Le Fly, hedged itself out of a great quarter. Again. The time to sell is often before earnings reports with few exceptions. Like AAPL.

The indices are bouncing a bit off lows now. DUST's appeal can't hide the fact that it's so thinly traded, but it's a possibility I have to consider. Or just go back to sleep.

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