I finally took the bitter bullet of big loss with Research In Motion (RIMM) puts. New Year Resolution: Stay alert on your existing trades while trying to diversify with other business ventures. Damn Me!!! I’m sure that I will be around during the next big trend and will try even harder to recover from these losses.

Closed 50 RIMM Jan 40 Puts @ $0.32 (bought @ $6.00 avg). Really Painful

Currently I’m reading Reminiscences of a Stock Operator for umpteenth time and will continue to do so as long as it takes to engrave the wise advice from the book into my brain. This is all in preparation for the next big bull market which will make oodles of money. Stay tuned!

Sectors Up:

• Steel (SLX) : 34.78 +2.19 (6.72%)
• Broker/Dealer (XBD) : 84.17 +4.15 (5.19%)
• REIT (IYR) : 37.26 +1.76 (4.96%)
• Semis (SMH) : 19.16 +0.88 (4.81%)
• Oil Services (OIH) : 86.71 +3.98 (4.81%)

Sectors Down:

• Biotechs (IBB) : 71.08 -1.55 (2.13%)
• Healthcare (XLV) : 26.52 -0.44 (1.63%)
• Natural Gas (UNG) : 24.83 -0.40 (1.59%)
• Consumer Staples (XLP) : 23.95 -0.36 (1.48%)
• Utilities (XLU) : 29.70 -0.43 (1.43%)

Longs: (ACM), (AFAM), (AGNC), (APOL), (AMGN), (AWK), (CBST), (CEPH), (COGT), (CWT), (DV), (EBS), (ESI), (GMCR), (GVA), (HTS), (LHCG), (LPHI), (PETS), (WFC)

Shorts: (AAPL), (ABT), (ACI), (ADP), (AFL), (AG), (AGU), (AMZN), (ANF), (APOL), (BA), (BAC), (BBY), (BIDU), (BNI), (BRCM), (BUCY), (CBI), (CCL), (CF), (CHL), (CLF), (CMG), (CMI), (CNQ), (CNX), (COF), (COH), (CSX), (CTSH), (DE), (DRYS), (DVN), (ENER), (EOG), (ERTS), (ESRX), (EXM), (FSLR), (FWLT), (GE), (GNK), (GOOG), (GS), (HES), (HIG), (INFY), (ISRG), (JCP), (JOYG), (JRCC), (KSU), (LDK), (LVS), (MA), (MET), (MS), (MOS), (MTL), (NSC), (PCLN), (POT), (PRU), (SHLD), (SOHU), (SPG), (SPWRA), (STP), (TIF), (UNH), (WFT), (WLT), (WYNN), (X)

This is by no means an exhaustive list of long and short ideas. We will have more charts as we move forward through the first ‘active’ trading week of 2009.

• APOL (Apollo Group): Short 1000 shares @ 68.06. Down -8,840. Intend to hold for next 4-8 weeks.
• FLR (Fluor Corp): Long 500 shares @ 52.36. Down -4,105. ‘Cheater Long’ position to play the bounce.
• GS (Goldman Sachs): 100 Jan 50 puts @ 5.00. Down -46,000. Painful loss to recover…
• ICE (Intercontinental Exchange): Short 500 shares @ 71.01. Down -2,805. Will hold for sometime.
• PCLN (Priceline): Short 500 shares @ 65.77. Down -1,340. Still holding well.
• RIMM (Research In Motion): 50 Jan 40 puts @ 6.00. Down -19,025. Another painful position…
• RL (Polo Ralph Lauren): Short 1000 shares @ 39.71. Down -3,840.

As far as the general market direction is concerned, I don’t have a good feeling about this market. I think we might test the lows and eventually break down to the new lows. But at this point looking at the charts of Dow, S&P 500 and Nasdaq, it looks like the market is at a juncture where it is unable to decide which way to head. This will be more clear when the big money crowd returns back from holiday season sometime this week or next.

About the portfolio being in deep red, I’m really little concerned about it at all except for GS and RIMM positions. For now, we have to digest the loss on GS and maybe RIMM but I’m pretty confident that GS will eventually help us make that money back when the time is right. The liquidating value of the portfolio is still well over the general market returns and is currently $121,172.50 (+21.17%) but well below its highest levels. I will be updating the portfolio page in few days to reflect the current holdings.

Don’t forget to checkout our new watchlist for 2009 with more long and short ideas. We will be in full swing in 2009…HAPPY NEW YEAR TO ALL!