Wednesday, March 14, 2007

Right Idea, Insufficient Followthrough

I closed out the short NQ futures contract just before 12 today as I was going to go teach my class and the market didn't seem to be going anywhere. Then the market collapsed of course while I was teaching. It looks to me like this is the beginning of the next wave down to match the initial one that peaked on February 27. At this point though I only have 3 QQQQ put options and a short position of 500 QQQQ shares. Between them they contribute beta of -0.15 to my portfolio. My overall portfolio beta (to the S&P 500) is 0.25. I should have more confidence but after the trading break I was stepping into the waters again nice and slowly. I'm up $1580 in short-term trading this month at this point, but could be doing a lot better.

No comments: