Positions review after the crash in first week of October 2008

By Paul | Published: October 15, 2008
CAF, DELL, ESLR, SLW

CAF, DELL, ESLR, SLW

It’s time to review my positions as promised last week.  After the record up day on Monday and then the lackluster follow-through Tuesday, today is probably going to be a down day in the markets.  Given my intermediate term outlook, I am inclined to hold my positions.  However, I need to unload my weakest link to reduce my risk.

Above is a quick snapshot of my current holdings.

Notice that DELL and ESLR are holding on nicely on this down (DJX -3.18%, SPX -3.57% as of this writing) day after the previous spike.  This is a very good sign indeed as it shows they’re likly to hold on to the previous ~20% gain, at least for now.

Actually, the price action of ESLR seem very healthy in particular.  There’s been a couple of big volume spikes in late day trading.  Although it does seem to be in a constant downtrend, as you can see from its chart.

As for CAF and SLW they are both below support at the moment.  CAF has broken its $25 support last Friday and is trading below it at the moment.  SLW is definitely the weakest at the moment.  If it isn’t such a cash cow, I would probably be selling it in yesterday’s rally.  Furthermore, it still seems to be holding on to its decending support line on the daily chart today.

SLW

SLW

At this point, the question I ask myself is, if I’m in all cash now, would I be buying these companies at this point?  CAF – yes, DELL – yes, ESLR – yes, SLW – yes.  Is this the bottom?  I don’t know.  I’ll just have to wait and see.  However, I will watch the day-to-day action of my holdings carefully and unload one of two of them to reduce my risk.

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Related posts:

  1. Mid-week Positions Review, October 21, 2008
  2. Mid-week Market Review, October 15, 2008
  3. 4 errors and lessons from being long just before the October 2008 crash
  4. BOUGHT +4 ESLR 100 DEC 08 5 PUT @1.40
  5. BOUGHT +4 DELL 100 DEC 08 13 PUT @1.80
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