I’ll probably be looking to add to the…

Good morning and there they go…

It’s actually some pretty interesting action this morning in that the breadth is very good but the moves are very small in magnitude.  Not sure what that means, but I’d guess that the path of least resistance is upward for today’s intraday action.

Yesterday I added those Sandisk calls and I’m needing to build up some short positions to balance the portfolio out a little bit better.  Especially after the huge run we’ve just had, some hedges are important.

I’ll probably be looking to add to the LPS first.  Even though it’s already hugely profitable for us, I just think the risk/reward on that one is a rare find and I want to try to take full advantage of this analysis.

I’ll also be looking at shorting the XLF a little bit too.

And with silver popping, it might be time to start building that short position up again too.  Not yet though — the gold bugs and inflationistas are convinced QE3 from Bernanke’s speech will drive the metals higher and we need to let that short-term fixation play itself out before making our next move in the metals.

It’s a beautiful morning in New Mexico.  Let’s enjoy it but let’s stay focused.  Back in a bit.