*Blue Plate Specials* Portfolio – 8/30/10

Market Notes
The gains made on Friday were pretty much erased today as major averages cling to support. The VIX is back into bear territory but a relatively high Trin at the close could signal a bit of a relief rally on tomorrow’s open. Market action this week will be accompanied by very low volume. I’m expecting action to be muted until the all-important jobs report due out Friday. Although I do think a worse than expected number should be priced in, I don’t think it is and if my prediction comes true, then the indices will be blasting through current support. (A cheap straddle on the SPY or the Q’s might be a viable play.)

Today’s new portfolio
Another short portfolio was entered using stocks selected from today’s New Lows list featured on the *Blue Plate Specials*. The position size is adjusted according to currently total fund holdings which is down from inception. (Initial position size was $1000.)

Capture

A couple of quick notes on our other short portfolios…

One of the rules in setting up these portfolios is to not duplicate current holdings, but I guess I need a stronger eyeglasses prescription because STU appears in both the 8/25 and 8/26 portfolios. That’s my bad.

The ADY postion in the 8/25 portfolio is rallying which is great if you’re long but we’re not. I’ll cover the position tomorrow if it moves up any more.

But what we lost in that move has been more than made up for by DGIT, chosen from the Breaking Down list yesterday. It gapped down 38% today on lowered guidance and looks like it’s going to continue to fall.

[Construction rules for these portfolios are given in the 4/21/10 blog.]

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