Two-Faced Portfolio

By -

Well, all my wailing and gnashing of teeth yesterday is somewhat relieved, since the bounce seems to be finally well on its way. All the foregone profits are a moot point now, as we are finally in the throes of a relief rally. I'm delighted it's finally started. Let's get this thing out of the way.

I bought a bunch of badly battered stocks to ride to the upside. I am still very, very "light" in my portfolio – merely one-third committed, and split between bullish and bearish. I expect the market will be very dull for the next few days at least. A good example of the kind of "bounce play" I'm after is shown below. This is the kind of stock I want to short after the bounce, but I want to ride it higher for this segment.


Just to be very clear about this – – – I think the shorting opportunity of the year is being built right now, although it could be as much as a few weeks off. I want to see the 100+ stocks I have in my Bear Pen watchlist recover to their former breaking points, and then I'm going to start getting very serious about not just shorting, but shorting to a commitment level way over 100%.

Meanwhile, I'm in a light-commitment, mixed-bag mode. Not the least bit exciting, but I want to bide my time sensibly.