Finances Day 3

Ok so I was wrong about the market being up today but like I said in the last blog we hedged our position so we ended up making money again today. The market numbers are odd right now. Interestingly enough today, the two of our long stocks climbed. I am going to call that luck for one of them. The other one was kinda a no brainer. But explaining why it was a no brainer in a heavy down market is a bit complex for this blog.

Today we hedged our position again. The numbers are not definative but if I were a guessing man I think the hedge is a little bit conservative. I really think we should have gone long exclusively. But then again there are some serious indicators that suggest that there will be yet another dramatic down by the end of the week.

What do I know?.... I just buy the stocks the algorythm projects.... Since 5 september 2008

45 stocks purchased
38 sold for a profit (average profit per stock is $441)
4 were purchased today
2 we purchased yesterday and are still holding them
1 we have held now for 4 days

So here is my guess .... Let me clarify first .... I was asked today if my position was that of the algorythm or a Tony opinion. The algorythm does not talk in terms of bear and bull markets. It does not indicate the index nor prices. The output of the model is just buy this or sell that. Our understanding of the market comes at the understanding of the correctness of the model. There are certain times that we just know if the model is correct or not. The model is 92% correct and with the elimination of certain days that number skyrockets to 98%. Right now the model is indicating that there are long and short stocks worth having. They are worth having in equal portion. I will say that energy levels of the model indicate a near peak position. However, I do not see the end of the maewest climb (I mentioned this before).... Moreover, there is an indicator I termed Tic-Tac-Toe from the model that strongly suggests shorts have played their role and longs need to reset them. So I am going to say the next couple of days will see up market followed by down market....

Hope you hedged your position today. If you haven't it may be too late.

The really cool thing about this whole limiting of financial shorts is that it has helped me get my head around the election.... And no I am not talking about who is the better canidate - ask me they are both terrible - the issue to me is why is the election so close. I think I understand.... In the next few postings I will try and explain both the election and the stock market as I see it. Most people won't like my answers.....