Who’s more scared right now, the bulls or the bears?
Meanwhile, the bulls are beaten and depressed. The emails from my (mostly formerly-) bullish money manager friends are full of doubt. Indeed, most bulls (aka former longs) have been puking up most of their biggest positions to raise cash and try to salvage what was just a few weeks ago a good year but is now probably down 1-10% on the year.
I used to poll my readers often with the question: “Who’s more scared right now, the bulls or the bears?” And when the answer to that question is as strong on one side as it is right now — do you know any bears who are scared right now? Do you know any bulls who are NOT scared right now? — it often coincides with a big turn in the market.
So I’m going to cover one short position today — the CableVision short. CableVision got crushed on their most recent earnings report after confirming our thesis that they are losing subscribers to a secular trend of Internet video consumption. And while I do think the company’s likely to struggle with this trend for a while, I want to lock in our nice profits here and catch out breath a bit. I’ll probably look to put this or another cable company short back in the portfolio in coming weeks or months. But with CableVision down as big as it is as fast as it’s fallen recently I want to lock in these gains for now.
Before I go, I’d love to hear from you guys about who you think is more scared right now — the bulls or the bears? Send me an email to cody@clwillard.com and let me know what you think and I’ll report back our consensus next week.