Two of the bloggers I read, recently hedged their longs, Nusbaum at Random Roger (link), Frankola at Student Stocks (link2). Random Roger hedges with SDS, the student BGZ. Frankola with BGZ already got stopped out on this morning's early pop, if he did what he wrote.
It is interesting for me, to see the market veteran ETF heavy Random Roger, and the finance major student with large positions in speculative stocks, both come to the same crossroads at the same time.
Readers know that in this trading blog, virtually every position I initiate is hedged when I go in. The strength in the market and the quietness, makes me believe it is unlikely for a big drop at the moment. There was a market squall overnight with U. S. stock futures down overseas, but by the time the New York open came, more news had come out and the storm had passed.
In reading Random Roger's blog, I find he is often early (as am I). So while it is getting late at the party, I think it is a while yet before the bears show up and take away the punch bowl.
MCD finally acting better. For long termers it is nothing to get excited about. For me with short puts expiring on 5/15/09, it may be all I need.
Long MCD, VMI
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