Wednesday, October 15, 2008

The Hedge Doing its Job

Only a quick post.  Worked a long day and have to get up early in the morning for an early meeting.  Work is starting to be a little crazy with me doing the job of two people.

The hedge is doing exactly what it is supposed to, it is creating ballast for the rest of my portfolio.  I still lost money today, quite a bit actually, but I'm not nearly as worried about it as I would be otherwise because my short position is balancing everything just a little bit.  Considering that this is a short term trade for me, and my other positions are long term holds, then I'm not worried about it.

The market is pretty ugly though, and I expect us to test the lows of the market that we bounced back from.  I expect the Dow to go back down close to 8000.  I will probably start selling my short position in that case, and play the market the other way.  But it won't be nearly as aggressive as my short position is/was because I think we could easily go below where we were last Friday.

1 comment:

  1. I'm still holding off until the storm dies down.

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