I have been in defensive mode for some time, defensive that is for me. I have a huge stake in LIM (all now covered with call options) so am just waiting for the takeover offer to settle out. I see no risk here anymore and the call options are too illiquid at this point in time to close. Talked with the Montreal Options exchange and they are as yet uncertain what the final disposition on the outstanding options will be. Once the company files its offer, they will issue a statement on alternative settlements (probably cash) for outstanding LIM options.
Also as I posted before I left I bought some QID as an alternative to puting the market so that gives me some defensive positioning as well.
I've reduced my margin, but not eliminated it, though I will be cash heavy when LIM gets settled.
On the other hand a lot of the riskier stocks look like they are in strong bull mode - some of my Canadian stocks which are acting that way are: ILI, LAM, BMC, TAM, OK and ROC. Others seem to be bottoming and perhaps turning around RGY, CAX, GPP and FV. So I am somewhat reluctant to sell these. I am as likely to add to these positions as to bail out. None are huge positions for me.
My portfolio is up 87 % since Oct 3rd of 06 and was up over 10 % last week alone. I still see good value in all of my holdings but am worried about the major markets so I may add to my QID position.
AI
