OPNewsletter (Jul’09) +3.55%

Last week markets tried very hard to rally but ended in negative territory. Market’s character can now be defined by more of “withdrawal of demand” vs anything else. For overall OPNewsletter, we have invested 38.7% of assumed 10K capital. As of last Friday close, we are up +3.55% x-commissions and +2.2% including commissions. I usually aim for +60% capital deployment but overriding philosophy here is “preservation of capital is more important that missing a potential investment opportunity”.

As of Friday closing, here is an update on OPN portfolios-

  • IWM is down -0.47%
  • X is up +4.50%
  • GDX is up +5.13%
  • DIA is up +5.26%

This doesn’t include returns on speculative trades of either VIX or RIMM.

As I shared earlier, market internals are deteriorating day by day. I don’t know when will the tide turn upside down. [b]If you have a long stock portfolio, you may want to erect defense lines while the IVs are lower and defense will be cheaper]. There is no harm in reducing the gains in order to protect and preserve capital. Making money is not difficult, preserving it is.

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Profitable Trading, OP

(This post is 2 days old, original post was published on the forum for OPN Members)


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