These positions will execute first thing in the morning, I am looking to sell off some inventory on the long side, looking at stocks whose charts are at risk and with a gap down open on the index will do some damage. The only question is when the cursory oversold bounce happens will these charts regain support - I don't know of course, but bigger picture I want to get to a more hedged portfolio (we still hold hordes of cash of course). I'll marry these with some modest short positions in TNA/BGU - I hate chasing things that are down so much in the past 30 hours, hence I expect to get whipsawed on these. I am not so concerned about making any big kills on the short side today - basically I want to get the portfolio readjusted, and if this is the beginning of an intermediate term correction we'll have plenty of time to make money on the downside.
All that said, the closer we get to S&P 1010, I'll be willing to buy some of these names that we sold off almost our entire position during this rally, and currently only have a holding stake of 0.1%. I have about 4-5 names of that ilk.
I created a basket of commodity exposure with 4 stocks, 0.5% into each to create a 2% position last week - I am going to sell the weakest 2 of the 4 today, so effectively this will drop from a 2% position to a 1% position. Freeport McMoran Copper & Gold (FCX) and Walter Industries (WLT) [coal] are the weaker 2; both will be closed.
Rovi (ROVI) looks like it has run out of steam, so I am going to cut it back by 1/3rd. It also may have formed a double top at $45 which would be bearish. If it falls below $41 and stays there, I might be done with the position, but for now just cutting back.
Long Monsanto, Rovi in fund; no personal position