My master plan here is to be net short (substantially so) if and when we get north of S&P 1000 as I expect the already exasperated shorts to just begin heaving (physically). I am simply building a basket of nonsense valuations that is growing by the day - you can shoot them in a barrel; they are everywhere - Whole Foods (WFMI), Whirpool (WHR), any stock that starts with W... ok, not really. Harley Davidson (HOG), etc.

These will all look exactly the same as the ones I added this morning - stocks trading at 25-40x+ forward estimates (or infinity in some cases as some companies won't be profitable for a few years), with a huge gap in a chart as obliterated shorts were engaged by Kool Aid drinking longs in the past 2 weeks. I am ok with losing money in the short run on these since a very large move has already been made and shorts before me laid their (virtual) lives so that I may prosper - I hope.

These are all half positions if you will (2% exposure each), allowing for more upside in the stocks to add the 2nd leg of the short. Or as with the names I added this morning - the 2nd leg will be added once they begin to really turn down.

Wynn Resorts (WYNN) - if the stock gods have it, the tiny gap at $34 fills. Won't make money this year but as bulls remind me, we have to look through the valley of 2009 to 2010. A bargain at 100x 2010's estimates. Or if WYNN beats the the analysts guestimates by 100% for 2010 as Americans flood back into Vegas, 50x 2010 estimates.


Capital One Financial (COF) - if Cramer allows below $24 this one will go; Jim Cramer penned a bullish piece on this yesterday after a nice 50% move in 3 weeks :) Talk about the biggest momo investor on the Street. No worries.... no profits in 2009 but cheap at 65x 2010 estimates. We've been on the wrong end of this one earlier in 2009 so we'll try again (this was an existing 0.1% position we are adding too)


Eaton Corp (ETN) - If Goldman Sachs allows below $46 we shall see. Dirt cheap at only 21x forward earnings for a company who just posted one of the weakest reports of the season.


Roughly 2% starting stakes into each of these names, so a 6% short allocation together for the 3 - with plans to double the exposure on the next run up OR a rollover. You can see volume dying off on each of these as the balls are juggled in the air by S&P 500 orders at appropriate times by someone.

Short all names mentioned in fund; no personal position