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Not applicable
With the futures markets flirting with a short term price meltdown again, i am thinking of shorting my portfolio of stocks (or at least those that can be shorted). The thinking is that I can bank the profits and buy more stock. If I lose on the short - then my gains on the portfolio will offset. Problem is, when to take profits on the short position!
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9 REPLIES 9
john_1
Super Contributor
I would sugest the you do nothing untll we have a close below 10000 on the dow.. omo
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Not applicable
Ja, I agree that the action is all in late night futures, which is a pretty poor gauge of things to come, and is probably overstated. Asian stocks are down, but not that much, they just reverted back to yesterday's open. Euro is also still a way off its lows. But I think the key is Europe. If the FTSE & DAX don't hold this morning, then it will probably act as a catalyst and we are going to be in trouble
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john_1
Super Contributor
we will preasure test the 5000 level I expect at least 3 good goes at that level over the coming days.... this is the front line in the war for fillet steak,or a bear skin rug...
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SimonPB
Valued Contributor
an the Q is why hedge ??? you a ong term investor, so why now try timing the market when price movement less of a worry ??
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HateGauteng
Super Contributor
Tjoppie, sounds like you getting braaied and now you want to add the sauce. Speaking of getting braaied, I hope there's a gap close today!!
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Not applicable
Simon, because I have a pile of cash that I have been wanting to invest, and there is absolutely nothing on the market that is offering fair value in my opinion. That tells me that most of my portfolio is overvalued at the moment (that does not translate into a loss, please note). Since selling my stock is the expensive option (comms, tax, slippage, etc) I am wondering if I cannot achieve the same results by shorting them and using the proceeds to buy more stock at a cheaper rate
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SimonPB
Valued Contributor
sure, but the timing is way tricky .. an not cheap .. I personally just sit out an wait for somethign I like to be cheap again ..
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theyoungster
Super Contributor
simon what's cheap for you? everyone knows you dont like gold mining shares, what sectors DO you like? me i like Pick n pay &SHP & spur these companies are well entrenched businesses that will be around for a very long time
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SimonPB
Valued Contributor
hedging has costs .. an aprt from gold I look at anything .. just no gold stocks ..
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