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Monday, April 16, 2012

Shouldn't Have Shorted the "Market"

If you had read my post on "How to Short The Market", you might have an inkling what I really meant:  Sector rotation!   Let me give you a better picture of sector rotation for today:  AAPL down 4%, GOOG down 3%, PCLN down 4.5%, and SPY is just about break-even.  Enough said.  It is frustrating if you're short via SPY, SPXU, SDS, SH, VXX, TVIX, and the like when you see the leaders take a plunge and yet the market holds up.

One the other hand, how many people would have the guts to short AAPL, GOOG, PCLN, ...etc?  Yes, there are a few I personally know but they are the exceptions.  One really needs to be bold, but as we age and gain wisdom, we tend to become more timid.  Just some fruit for thought.

PS. Yet another reason: Index Rebalancing.  TXN to replace the beaten up FSLR: http://goo.gl/crDI3
What do you think is going to happen to the market index comes Facebook?!

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