Trades!

When I looked at the market today, the first thing I saw was the long bond up 5%! So I called Schwab and sold it. Immediately, no second thoughts, no questions asked. 5%! I don't think that has ever happened in the history of the US.

Then I looked at the stock market to see if it was still there. It was. So I closed shorts on DIG (oil), COF (my biggest position), and sold SKF (ultrashort financials).

Then while I was on a roll, I bought PWE and ALD. I'm almost certain Bernanke will cut; he pumped today until the stop out was 1.75% and there was still a slight drain on the system from maturing repos. So, I think the worst is over for US markets.

Well, how can the bond market take that much money out of the market and the DJIA still doesn't flop? I think that investors are bringing their money back from overseas markets. However, I still held onto shorts in commercial real estate (GGP),
retail (ANF, DECK, AMZN), homebuilders (ITB, KBH) because the govt bailout of Fannie/Freddie will prompt tighter mortgage rules, and international shorts (FXP, BCS).

So, this completely changes around my risk profile of my portfolio. Leverage is down to 1.31 times from 2.71 times. This gives me a lot of room to work.

Here's the risk picture:

US equity - long: 26% (up from 21%)
US equity - short: 43% (down from 80%)
Intl equity - long: 20% (up from 8%)
Intl equity - short: 32% (up from 27%)
Forex - long: 0 (no change)
Forex - short: 9% (no change)
Commodities - long: 0 (no change)
Commodities - short: 0 (down from 8%)
Options: 0 (no change)
Debt/Duration: 0 (down from 17,000/30)
Cash/Margin: 41%/82% (up from -49%/62%)
Leverage: 1.31x (down from 2.71x)