With the a proposed bailout of Spanish banks, it appears a rally is likely this week. As a result, my short positions will rally and create a loss in my portfolio. That is what I expect. After all, Asia is already up tonight on the Spanish bank deal and better than expect Chinese economic data.
So I am bracing myself for a strong rally on Thursday. The only element in my favor is that my record of calling the next day's market performance has been about 50/50 :-)
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The latest "solution" to Europe's challenges will soon be recognized as yet another band-aid, and market declines will resume. Your shorts will pay off, in my opinion.
ReplyDeleteKurt,
ReplyDeleteGreat call. I was surprised by how much the market rejected the bailout as a solution. It appears that the market may be moving to the "all news is bad news phase."
Last week, I added a couple new short positions which hurt my results, but they sure helped today.
We'll see what tomorrow brings. No predictions from me :-)