Wednesday, 20 May 2009

some new positions

L: 92% S:0% G: 92% N: 92% ~ $D 0% $G 0% $V 0% $P 0%

based on some of the work that the Raven did yesterday, he's put on some new positions that he likes, although this is skewing the portfolio rather heavily to the long side, especially as we appear to be approaching the top of the SPXs trading range. Given that vol has crunched so much on this slowing rally, he's going to look at some put spreads as a way to increase his protection on the downside as its more than plausible that we have a retest. The optionality and liquidity that the downside puts give the portfolio, although costly over the last month enable the Raven to trade around the portfolio without losing too much focus on overall market direction.

He's annoyed that he didn't put on his PG vs JNJ spread that he looked at on Monday as its moved back towards fair value on his technical model.

Still more work to do in terms of research and he'd also like to have a quick review of his start of year predictions, as well as making some new ones.

Its also interesting to have heard Jack Welch's comments with regard to the Chrystler bankrupcy. The Raven has said this before, but he'll say it again, its clear that the Obama administration don't understand fiduciary duty at all. Secured creditors didn't get funded by the unions in a presidential election, so why should they give up 55% of the company when they are SECURED CREDITORS? Joe Biden even said 'we owe you' to the unions, and boy!! have they paid them back. If this was any special interest group representing a business interest the liberal media would be calling for a march on Washinton with pitch forks.

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