Profunds index and sector trading

[was Steve]

sorry about what i believe will be temporary pain for you Gizmo. Now that we are in my targeted top range on ndx I am taking my first net short position since my shorts were covered back in late may. We could well grind up a bit more over the balance of this week but ideally that should be it. The NDX has followed my maps very well the last few months. I sure would like that to continue the next few, though it is rare to keep the golden touch for extended periods of time.

I sold the 50% wireless sector longs and moved to 100% short. Stop is a close above 1625 ndx. Ideally I hold some or all of this short for 1-2 months at which point the ndx is in the neighborhood of the August 2004 lows at 1300 ndx. If things go as planned and I do hold, that would put my year to date in the +70% range up from the current 23+% range as of fridays close.

INTC is going to announce the total amount of layoffs after the close. Its rumuored to be between 10-20k workers or about 10-20% of worldwide headcount. Knowing how mr market is, the stock will probably go up on the news or its possible that is what made it outperform the ndx the last week or so in which case the "good" news for the stock is cooked in. will know soon enough.

Either way I am going out 100% short with a 50/50 mix of NDX and Emerging markets for a bit of international short exposure.

Good luck to all longs and shorts. I have planned the play, now it is time to play the plan.

Adios amigos,
Steve