Another garbage performance by the local market. It really struggled to hold its head above water and it certainly appears that seasonal strength is wilting. I now have 1 position left in the ASX Power Setups and two positions left in the US Power Setups that I will be closing tonight. Once the ASX position is closed I will be hanging the boots up for 2009 and readying the account for 2010 when we’ll go with real time performance again. We’ll be starting the year with a fresh $100,000 and follow the Systematic Power Setups without discretion. Account statements will be posted at the end of each week. I will mainatin my Growth Portfolio positions over the Christmas break.

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10 December 2009 – Winding down

It continues to amaze me how many people think they ‘need’ to trade. I mean, really, in this environment? The hardest trading environment I have seen or can remember with any clarity since I started in 1985. I think the 1988 – 1994 was bad, but I was young and stupid back then so clarity was not a strong point. There is no harm in standing back for a week, a month, 3-months or even longer. The name of the game is capital preservation. We’ve been banned from short selling and quite frankly what can you really expect from buying a stock at this stage? I’m sure someone ie making some peanuts from doing some buying, but I’m happy to leave it to them. I want swing trades lasting a few weeks and I’ll say that there aren’t many stocks offering any upside over a few days nevertheless a few weeks. Patience is a virtue. Save that capital. Opportunties will come – guaranteed.

Without the short selling facility we remain restrained and frustrated. CGF was a stock I mentioned as a sell opportunity just a few days ago. It tanked over 11% today and will drown some more tomorrow with Europe down some 5% as at writing. CBA was also mentioned and it closed -2.24% but is on the right path. SUN is my pick for a new short tomorrow and I think there is some decent downside in this one, possibly as far as $8.00. However, we’ll just watch from the sidelines.

The ASX has said they would like ‘covered’ short selling to be brought back online as soon as ASIC considers it worthy which is a good sign. That said, Europe is under fire and there is talk of a few economies defaulting, so no doubt hedge funds are to blame.

In the interim our AUD account continues to gather dust (aka interest). Buckle up.

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October 6th, 2008 – Gathering Dust

I’ve scanned some 1500 ASX stocks this evening and without the ability to short it leaves us sitting on our hands yet again. I like the look of shorting a few of the financials, such as CBA and as discussed this morning CGF, but no can do. Patiance is a virtue. Our time will come. With Non-Farm Payrolls in the US tonight this market could rip one way or other very quickly.

I read the latest update from the ‘powers that be’ that naked short selling is now indefinitely off the agenda. It appears that the regulators, specifically the ASX, needs to address the exact definition of ‘short selling’ before a specific ruling can be handed down. No comment has been made on ‘covered’ short selling as yet so hopefully the 30-day pause will be all that we need to endure.

Have a great weekend.

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October 3, 2008 – Pt2