S&P has tried and failed to overcome the 1400 level consistently over the last couple of months. Today, it overcame 1400 for a bit only to fall back. in fact, as I write this, the rally that has lasted most of the day has completely evaporated and S&P is now lower on the day. For the last week, I have looked at my holdings again and again wondering if I should sell my long positions or trim down. Many of my stocks have been steady and forming nice bottoms or bases (Omniture, Marchex) and some have just been going up at any sign of a broader market rally. Visa, Potash, RIMM, Apple and Nintendo have all weathered the pull backs exceptionally well and I am torn whether to hold on and ride out the bear or to sell and buy at lower levels. But then I have never been good at trading positions and in hindsight, selling half my POT at $115 back when it dropped from $135 some 4 months back has really been a source of regret for me. So I hold on, hoping that this too shall pass. Meanwhile, I do own some SDS to hedge my bets and stifle the effect of a market decline to my overall portfolio. I suggest you do the same.
-- Faisal Laljee
Full Disclosure: I own all the stocks mentioned in this post, but my position can change anytime without notice.