covering GM short, +20% in 5 weeks

We're covering our GM short announced in our January 30th update of this year entitled "long EMX, WEGI and short XLY, GM, AXL, SYX, AXP" for gains of 20% in only 5 short weeks.

We remain GM and general market bears, but we are prudent traders so such big quick gains must be taken "off the table" in light of a likely market rebound in the near term.

Thus far in 2008 we've closed 5 positions for an average 27% gain on an average holding period of 9.5 months which implies an annual gain of 34%.

Over the past 9 months, we've closed 18 positions for an average 33% gain.

Over the past 12 months, we've closed 36 positions for an average 43% gain with an average holding time of just under 6 months which implies an annualized gain of over 85%.

The recession in the US is roughly 8 months old, and the effective market top was also approximately 8 months ago.

Bear market conditions remain in effect globally. We suggest adhering to stops, and not being greedy by going long too soon. Once the markets bottom, which may be a long time from now, we expect hindsight will show that there's plenty of time to accumulate positions at the effective lows in quality stocks, but only for those who preserved their capital or made profits on the way down.



We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the stocks we do, or mentioning them in this blog. If we hold existing positions we divulge the fact, otherwise we generally buy and sell as diarized here. This blog itself is merely a diarizing of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult your broker or investment advisor before making any investing decisions.

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