Wednesday, August 10, 2011

Downward Momentum - If you can not beat'em then join'em

Another terrible day in the markets.  

Rumors about the state of French banks seemed to be in the "news" today.  I have no  insight into the French banking system.  They probably have some issues.  However, my inner conspiracy theory radar sure had the feeling that someone was positioned short on French banks, and knew it would not take too much noise to make the the already nervous world to get even more nervous about these banks.  

Who knows the real story but ....if you can't beat' em ...join' em.

CCI thought about trying to short some specific European banks, but took the easy approach and day traded the double short Europe ETF (EPV) today.  Skimmed off a modest  2+% profit    Once again a small hedge to the overall portfolio, but these days any gain feels good.  

7-0-4 with this hedging strategy YTD.  

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