Trade Update

I tweeted Friday that I sold 80% of my remaining BGU position from late February 2009. I just realized that I didn't note it here on the blog, and that I thought I should because it is a rather significant change to my positioning.

I'll not crow about the amount of return on the trade, but it was a great trade, and I was very proud of it because it seemed as though the whole world was bearish back then. The hardest part was holding it over the weekend before the market hit bottom. My great fear was that there would be a Black Monday.

I also had an emotional attachment to the trade because at the time, while I was not blogging or tweeting, I was participating in a chat room and reported the trade live there, only to be be teased by some other traders who took delight in the ticker symbol (BGU) -- "Don't get any on you," one said.

I got it all over me . . . for the last 2+ years. And I'm told some of those same traders are still in that room playing the S&P e-mini for 2 points. I don't respect chat rooms. They seem to encourage mediocrity and dependency rather than excellence and peak performance.

While the BGU trade looks great as of today, I have no idea whether I will end up leaving money on the table or not. I really don't care. I felt a sudden urge to be liquid, and went with my gut. Right or wrong, what's done is done.

I also used some profits to clean up my inventory a bit. Sloppy trades in the SDS and SH that I held onto as separate tranches have been liquidated. I'm still holding VXX at a loss and will continue to do so.