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Monday, April 21, 2008

What - no shorts?

For those who read this blog on a regular basis, you may notice that for the first time in months our trading portfolio contains no ultra short ETFs. Last week's market action caused them to hit stops with some profits booked and, unfortunately, some losses booked as well.

As discussed in this past weekend's post "Markets jump - stocks poised for more gains?", it looks to me like Mr. Market is trying to sound the "all clear." This is despite the fact that I still feel the economy has problems and that financial stocks, in particular, have a long way to go before they
really deserve the trust of investors. (Indeed, financials took it on the chin in today's trading) Nevertheless, if there is one thing I have learned while on my journey as a financial blogger it is that the market moves as it sees fit despite the economic backdrop or what the experts are saying about it. The famous quote "the market can remain irrational longer than you can remain liquid" is absolutely true.

That was a long way to go to say that for now I am a cautious bull. I am avoiding the quick trades into and out of the ultra ETFs. The easy money was made on these trades after markets started tumbling back in October. Since the January lows we have been in a trading range, and I have come to the conclusion that, not being a full time trader, I am not nimble enough to jump in and out of these ETFs. Of course, many financial advisers would have said it was foolish to believe that it could be done in the first place.

As a result, this blog will be featuring more traditional stock picks based on our weekly TradeRadar Alert HQ market scan process. In other words, I will be putting my money where my mouth is and featuring analysis of the picks I am investing in myself.

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