Wednesday, 6 February 2008

Commodities and portfolio update

Well, my Copper short that I'd entered yesterday hit its stop loss of 324.95, so I'm out of that for flat. Oh well, it was worth a try to try and get the position larger as the market fell. I'll sit out of this one for a few days and re-assess.

My Crude Oil short is finally back to flat following a large increase in inventory's. Perphaps my timing on this trade wasn't ideal, but I think it's inevitable that oil falls substantially from here, so I just plan to leave this trade alone for now.

Away from that, I'm still tempted to enter some new equity shorts. Currently I have my eye on Mohawk Industries (MHK), a carpet and tile supplier. This is exactly the sort of industry that will get hit from the fallout from housing and a slowing economy. They report results on February 14, so I plan to be short by then. As for my current shorts, I love them all. I feel extremely confident sitting short the market just now.

One thing though...if anyone has any ideas of some stocks to get long, please mention them! I've only got 3 on (HLYS, BID, IACI) and I don't particularly like them. IACI is off 3% today after posting a large quarterly loss. If I didn't have so many shorts on, I'd let some of the longs fly.

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