Hots Hands Can Get Cold Fast

I have had a hot hand lately - there is little dispute there. Before you know it though things can turn around on you. I am thinking of closing out the Wachovia trade. Even though it is up a little bit, and I feel like my feelings on the financials being major sells is justified - this trade just feels too forced in the short run. I am going to watch it for a few more days and if nothing still happens - I will probably unload prior to the earnings on 10/17. The goal is to raise more cash prior to the CPI release number on Friday 10/14 so that I can have maximum flexibility.

If NCTY is still in the 16s tomorrow, I will probably also buy some more. I know that I said I was going to wait until it got to 15 - but I am just getting too greedy. I see this thing at 20+ in November after Q3 earnings and I want to accumulate as big of a position as I can without having more than 60% of my money in it.

Gold may move up a little bit here, but I am not expecting anything phenomenal. Will my account finally crack the 13K mark? Lucky 13? 13 on Friday.......probably not. But well be watching.

Also - the market has been acting extremely strange lately. Huge sell-off in energy which is happening indiscriminately. I am thinking of picking some Encana (ECA) or Chesapeake (CHK) on a pullback during next few weeks as these stocks are down big and they are two of the largest natural gas producers. And natural gas prices are not expected to go down over the next 6 months......if they do I will be shocked.

Also - I think the retailers may be a great short this winter. I am not sure how to game it. Probably need to wait for whatever Xmas rally would materialize on anticipation of solid sales and then get the PUTS on Best Buy, Gap, etc. - as I think this is going to be one hell of a winter to say the least.

Also - word on the vine is that Sandisk maybe a BUY??? prior to earnings. I have a hard time believing that after the incredible run that it is had - but I am open to everything so we will see where the trading odyssey takes over next few weeks. Can't say that this journey hasn't been gripping so far!

Regards,

BG