Thursday, 14 February 2008

This market is gifting you money

This market is practically giving money away. Trading from the short side, I can barely see how you can go wrong. Adding to shorts here:

Selling ~$69k of S&P 500 June futures at 1371.5

Selling ~£13k (~$25k) of HMV.L at 128.9p. HMV is a large specialist music/DVD retailer in the UK...any slowdown that hits discretionary spending will hit these guys early...combine that with increased music and video piracy (everything is available illegally for free with the simplest of internet searches), and this company should fundamentally struggle.

And finally, selling ~£59k (~$116k) of FTSE June futures at 5922. UK slowdown is coming, but is not being fully recognised in equity prices yet. It's a gift.

[Admin note: new trades will go into the spreadsheet over the next few days, I'm travelling at the moment so unable to keep it fully up to date.]

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