Wednesday, February 9, 2011

Ugly Day

Yikes, ugly day for me. Looks like tomorrow won't be much better (see Cisco). The market was rough all day, and I probably should have realized that I could use some more short exposure.

(a) TTWO - Despite very solid earnings, the stock was up rather mildly. That should have tipped me off that the market is getting weak. ATVI's disappointing results after the bell could drag down TTWO (along with my calls). I will be looking to liquidate at the right time.

(b) OPEN - turned into a royal mess. The stock meandered up and down, with no conviction in either direction. A more nimble trader could have made money, but I did not. I am still holding the puts, but they are pretty far OTM.

(c) AKAM - well, the best I can say is that I did not add to my position, so my losses will be small. Trading just looked too ugly today. Obviously, some puts would have helped. Lesson learned.

(d) EXPE - reports tomorrow morning. My guess is that, whatever the earnings, it will be difficult to buck the downtrend.

Lesson? Market conditions change quickly. The all-out bullishness of just a few days ago no longer exists. There were signs of trouble, which I did not react to with sufficient attention and concern. It seems that my gains from trading naked long in JDSU, CIEN, XIDE, and TTWO (until today) blinded me to dangers ahead.

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