This thread tracks real trades in one of my portfolios. Refer to backgrounder for more info.
What a difference a week makes. Last week, we were up 7% and thought to be well-positioned for a continued move up. Today, the 7% is gone and we are back to where we started on January 1. It could have been worse. Matter of fact, if I hadn’t made any moves more damage would have been realized. Being flat is nothing to brag about, but it’s better than being down.
So, let’s take a look at the moves.
The DOW’s 400 point loss on Tuesday (-3%) was tame compared to what happened in the commodity patch. Commodity stocks were taken out and shot. The Gold Mining Stocks index (GDX) was down 7%. Both BHP and AUY were sold on Tuesday.
I sorta kicked myself when I sold AUY. I typically wait until the last 15-20 minutes of the trading day to execute most of my sells. However, I couldn’t handle the heat and sold around 3PM. Right afterwards it bounced above my target selling price. It really didn’t matter much. I probably would have sold it on Friday for maybe a dime more.
The selling subsided on Wednesday, but was back in full force on Thursday. On Thursday, I made a partial sell of CEF and the remainder on Friday.
Who knows where the market goes next? Maybe the market will bounce back. Maybe it won’t. Gold really should have separated itself from the general market and served as a safe-haven. However, bonds were the only place to hide.
The Real Money portfolio is only one part of my overall portfolio. I sold quite a bit in the rest of my portfolio as well. I also went short two subprime lenders – NEW and LEND. I will share more about those trades in a few days.
Until I get a sense of the market’s direction, this portfolio will remain 100% cash.
Remember our old friend Cresud. Two weeks ago it was up 15.5% in a one week. Last week it gave it all back plus some. It closed down 17.5% for the week.