The portfolio was down last week, as was the market. The holdings fell 12.5% from the previous week. The overall portfolio is down 34.0% and the remaining holdings are down 51.7%. The only positive still has been the gain from shorting Las Vegas Sands. Otherwise, the prices of these stocks have been destroyed by the October through November decline.
For reference, the stocks on my 7/7/08 buy list were: Potash (POT), Research in Motion (RIMM), Bucyrus (BUCY), Williams Cos. (WMB), Southwestern Energy (SWN), Hess (HES), and Range Resources (RRC). The system has given a sell signal for every stock: Williams Cos. (8/8/08), Range Resources (8/22/08), Hess (9/12/08), Research in Motion (9/12/08), Southwestern Energy (9/26/08), Postash (10/10/08) and Bucyrus (10/10/08). The stocks on my 7/7/08 short list were: Las Vegas Sands (LVS), Sears Holdings (SHLD), and Life Time Fitness (LTM).
|Stock [purchase date]||Shares||Purchase Price|
Price on 11/21/08
|Range Resources(RRC) [7/10/08]*||50|
|Potash (POT) [7/18/08]*||10|
|Southwestern Energy (SWN) [7/18/08]*||50|
|Potash (POT) [7/24/08]*||10|
*Range Resources received a sell signal on August 22, 2008. Southwestern Energy received a sell signal on September 26, 2008. Potash received a sell signal on October 10, 2008. I plan to sell the position once it reaches the original purchase price, which may take a very, very long time.
At this point, I will continue to hold these stocks. I will make no more purchase since sell signals have been give for every stock.
|Stock [short date]||Shares||Short Price|
|Las Vegas Sands (LVS) [7/7/08]||100|
closed 7/11/08 @ $33.69
I have only able to short Las Vegas Sands so far, which I have closed. I won't be shorting Sears Holdings and Lifetime Fitness since both stocks need to be "rented" from a shareholder for about 0.1% a day and a minimum of $50,000 needs to be shorted. Too expensive for me to short. I need to find other stocks for shorting, but have not identified other good candidates as of today.
On 8/15/08, Las Vegas Sands closed at a short term high of $56.30. It closed at $6.32 on 10/24/08, rebounded to $14.19 on 10/31/08 before falling again to $3.23 on 11/21/08. It's too bad I didn't hold the short position until now :-)
The market continues to be choppy. All three indices are in bear market territory. As of the close on 11/21/08, the Dow, Nasdaq and S&P 500 indices were respectively down 37.77%, 47.81%, and 44.39% year to date, creating the sixth low of the year.
Most economists now acknowledge the probability of a recession in 2008 is relatively high, if we are not already in one. The lack of any gains since the bailout package approval and the post election decline indicate the market will likely continue to be choppy.
For now, I am shifting to more cash and I will no longer be trying to short stocks. I will continue to maintain my holdings managed by our financial advisor, and plan to sell a duplicated funds during any strong rally which may occur.
Disclosure: At time of publication, I am long Range Resources, Potash and Southwestern in my trading account. The managed accounts are long Bucyrus, Research in Motion, Range Resources, Williams Companies, Hess, and Sears Holdings.
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