The SPY gaped down below the 50 MA and finished the day down 1.29%.
At least I wasn’t bullish, not the least bit. But I’m not a bear like I used to be capable of. After all these QE’s, I’ve been really gun shy about shorting. I’m only 15% long and I have 200 TZA (3x bear small caps ETF) and 100 RTH (retails ETF).
May be it’s not entirely psychological about my inability to be short the market in a bigger way. After making new highs 3 weeks ago, the last 3 weeks really looked like consolidation off the 50 MA with possibility of making another leg up. It’s not until today after it lost the 50 MA did the bears have a stronger case.
Back to my 15% long positions: why the long positions if I am bearish? Well, that’s because 75% of which is my trapped long time loser, AONE. Whenever I accumulate shares based on story lines, I ended up getting trapped for the longest time. The reason is that I nibble without any exit plan at all. I just wanted to accumulate shares until one day the stock would just rocket off. After all, wouldn’t it be nice to catch stocks like GOOG, BIDU, AAPL, etc. at their early stages? AONE has good story lines. When I first started to build my position, it was a new IPO and a rare one at the time that seemed to have survived at the time of financial Armageddon. It has had exposure even on the NBC Nightly News in recent months. Goldman Sachs also recently set a target of $9. Yet the stock simply refuse to reverse even for a short term. It ran out of cash and had to do a secondary stock offer. That’s when I started to fear that the company can just go belly up, like ALL of my investments in half dozens of private companies.
Given it’s not a trade, I’m biting the bullet and holding on to the shares while trying very hard to not to accumulate more shares. I can’t dream big on AONE any more. I just hope that it will at least some day reach Goldman’s $9 target! The big question is, as I’m married to AONE, should I vow “till death do us part”?