Flat Day Rebound

Today helped bring my account back up nicely but not completely. Commodity and materials related stocks were flying high today which is where most of my positions are to the long side. My puts had smaller losses and my puts on the IYR had a gain. Partially due to frustration and partially due to the fact that I am taking the CFA Level 1 exam in a couple weeks I decided to cut back on my positions so I didn't feel inclined to check it as often.

I actually for the time being exited the two long positions at very good prices. ANR and 5 of my 8 contracts on DSX I exited near the highs and they pulled back significantly into the close. Obviously as the market pulled back I wished I had all my SPY puts still on but I sold a majority of those as well and only kept 3 so I am still long biased. I will stay long biased until we break back below 900 which may happen soon. Today had a worse than expected housing starts like I had wanted but it was much worse and I was surprised to see the materials and stocks in general up after news like that. If we hold 900 tomorrow I think that will be bullish for stocks and set us up for another leg higher as long as jobless claims stay in check. I doubt my projected worse than expected jobless claims numbers will hit until later in June as more people hit the job market unable to find jobs. If that doesn't happen we could see this rally gain some momentum.

I am willing to play the market either way obviously I just wish it would pick a direction that is consistent like before but I doubt that will happen. I feel like since the market psychology is that overall thing will get better people are optimistic making a bearish bias a little bit harder than being long, but right now the longs lack the catalyst to make it worth it.

Total Return for 2009: 157%