Blue Plate Specials Portfolio Update

How wild is this market? To paraphrase Bette Davis in All About Eve, “Fasten your seat belts, it’s going to be a bumpy ride.”

No kidding. Today, the market slid down on the heels of the bears, then it marched right back up again on the back of the bulls, forming an almost perfect V pattern. Following that, a tug of war between both camps ensued with the volatility ping-ponging in reflection. Floor traders must have been ordering lunch from Maalox.

The trading day ended with no one clearly in charge, although the Nasdaq and the Dow transports (DTX) closing just below major support plus the fact that the Trin (Arms Index) rang in low (but not too contrarianly low) places the football inches over the 50 yard line in favor of ‘da bears. (Yes, I know it’s baseball season but I couldn’t think of a decent metaphor.)

Anyway, the good news is that I closed out yesterday’s shorts for a fairly decent return of over 2%. Sure, two percent a day is nothing to sneeze at but in this market the portfolio could have easily been down that and more on the open.

The feint-hearted needn’t dip their toes into this maelstrom. Higher volatility might be in the prevailing wind for a while. To paraphrase the divine Miss Bette again, “I’m nobody’s fool, least of all the market’s.”

Capture

For more info on how this portfolio is generated and how you can generate your own, see the fund rules in the 4/21/10 blog.

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