Profit Taking

I felt that it could only be prudent to take a 22% profit on my Bear Stearns short. With their horrible loss today, even though they were up a little, I felt that it was the thing to do. The market's been doing very well despite the dismal news. This leads me to believe that any good news could spark a big rally. On the other hand, losses from an unexpected source, or a sign that the credit crunch was spreading beyond the banks could trigger a panic. The VIX has continued its slide, showing that fear is dissipating.

I'm up about 12% on the year. Unfortunately, the options account is down, but will most likely come back as soon as the VIX spikes again.