Trading ahead of my time.

Yesterday was a nerve-wracking day, as $INDU went up and DOG down.

It looks like I have to advice anyone against following my strategy. First, because I don’t guarantee the results. Second, because I don’t collect a fee for it.

So far, most of my trading was ahead of its time. Whatever was clear to me, took a while for market to absorb, digest and act upon.

Maybe it’s me who needs to adjust and think like masses. High unemployment, ton of foreclosures, commercial loan defaults, low consumer confidence, …? Who cares. It could have been worse. The data shows that everything is collapsing at the slower pace. Buy Goldman, buy Morgan Stanley, buy American Express – government will come and give them money, and let them pay bonuses, and tax you to shut up. The DJIA will go back up to 14,000 or maybe 20,000…

In any case, I have to have discipline and manage my account, so not to be wiped out by the market’s irrational behavior. Considering that I am long oil and gas and short dow, builders and financials, my total market position is about 2:1 short vs. long. However, in absolute dollars it is leveraged by about 50%.

Next week I will unwind at least some of my positions – I don’t like to be leveraged and I don’t like to overtrade.