Up £1,500 on yesterday which is great. However, my FTSE250 short lost a massive £4,200 which seems like a very expensive hedge. I certainly need some kind of hedge but is the right one?
I need to look at possibly placing some of it on a short FTSE100 and/or covered warrants / options.
Any recommendations welcome.
Until tomorrow...
| Stock | Long/Short | Entry Price | Latest Price | Current profit/loss | % on prev day | |||
| Arm Holdings | Long | 934.90 | 971.50 | 1388.37 | 30.26 | |||
| Advance Computer Software | Long | 90.23 | 88.50 | -686.52 | 22.32 | |||
| Aveva | Long | 2,303.00 | 2,318.00 | 230.13 | 6.98 | |||
| Bellway | Long | 1,134.80 | 1,158.00 | 722.61 | 90.48 | |||
| Cineworld | Long | 272.68 | 280.75 | 1052.73 | 1,259.52 | |||
| Diageo | Long | 1,952.00 | 1,996.00 | 1130.92 | 51.16 | |||
| Domino's Pizza | Long | 526.30 | 553.46 | 1837.62 | 41.48 | |||
| Easyjet | Long | 987.00 | 1,050.53 | 3058.74 | 50.52 | |||
| Euromoney | Long | 924.80 | 935.00 | 390.33 | 248.04 | |||
| Intertek | Long | 3,300.30 | 3,440.00 | 1499.34 | 13.84 | |||
| Ladbrokes | Long | 224.36 | 235.60 | 1784.69 | 11.94 | |||
| Moneysupermarket | Long | 199.00 | 199.10 | 15.57 | -97.93 | |||
| Porvair | Long | 198.50 | 196.84 | -300.72 | 14.22 | |||
| Ryanair | Long | 566.30 | 588.50 | 1396.16 | 23.33 | |||
| Spectris | Long | 2,367.00 | 2,390.00 | 342.64 | 545.74 | |||
| Telecity | Long | 926.30 | 940.50 | 544.31 | 112.57 | |||
| FTSE250 | Short | 13,679.84 | 13,861.28 | -4231.23 | -3,777.09 | |||
| Restaurant Group | Long | 425.06 | 431.10 | 506.88 | 541.95 | |||
| Interserve | Long | 497.34 | 495.20 | -154.01 | 52.72 | |||
| Running profit / loss | 10,528.56 | |||||||
| Diff from prev day | 1,536.03 | |||||||
No real advice only I'd say not to go short on FTSE 250. Generally this has been doing great even after last weeks hit.
ReplyDeleteRestaurant Group looks to be another very good pick judging by today's move.
ReplyDeleteLots of FTSE250 stocks have momentum right now and the index seems to be reflecting that. Other than finding a weak sector to short it's difficult to second guess right now when these indices will sell off a little. Charts still seem to be suggesting upside, but we are well into the climbing the wall of worry right now. The FTSE250 isn't that far off 14,000 and markets tend to be attracted to and gravitate towards round numbers. At this stage it will probably be more of a surprise if it doesn't get there.
Yeah, thanks - RTN was a good pick - lucky!
DeleteI know, the market seems to on a one way track upwards but everything that goes up...
I am looking into different options as a hedge, have adjusted my current positions (read more in my latest post) and hopefully that helps.
Why do you think you need a hedge? For a trending market your approach is simple but effective. You pick a variety of stocks, depending on quality of choice you make a good or not so good start and then you weed out non-performers and retain the others. As long as the market goes up (or down, expect you will need to go short on bets instead of long) that should do. If & when it flatlines, simply tighten your SLs or liquidate as appropriate and sit tight.
ReplyDeleteYeah, I do wonder sometimes why I need one to be honest and you are certainly right with maybe sometimes just selling out and sitting tight instead.
DeleteI just have that feeling (as a lot of other investors do I'm sure) that the markets are just a bit too high right now. They seem to just go up and up, driven by a flood of money from the bond markets, never ending money printing but I feel that at some stage this has to stop, the market will correct and I just don't want to get caught with my pants down!
I have been very lucky up to now and having been burnt before, I am becoming more pessimistic. One bitten, twice shy!