9/24 Day summary

As we expected, day was red; we lost about 0.5% more than S&P, which means we were off the target. I was watching our portfolio index during the day and it was changing in waves. Every new bear attack was visible in market indexes and we were getting instant SDS protection. We were even with S&P or just slightly better. 10-15 minutes later selling pressure on penny stocks was catching up. Same lag in opposite direction. Well, SDS does great job and I think it is better than stay in cash now. You may argue about SDS 2x leverage decay and it is true. It will be a good idea to sell covered calls against SDS holding and for those who know how to play with it and who is more aggressively bullish, it could be an option some time later, if this sell-off continues. But we don't cover this topic in our strategy, at least for now. Yes, it was the second red day for the market, but I still would call it a healthy consolidation.

As for specific portfolio plays, nothing reached extreme levels to trigger trades. Strong action from LBIX bulls was consistent the whole session. News were serious indeed - income in Q2, share repurchase program - it's not a joke. We have only core position in LBIX and we keep it. Selling good performers in a weak market to realize gain is not always a good idea. Good plays tend to become even better and weak even weaker. We need to compensate this gap, especially now and the only way to achieve this is to keep strong plays as long as possible.

QRCP - new position in our portfolio. Oil play with a good chart. This is a first pull back after almost 100% run QRCP had 3 weeks ago. Actually rally was ahead of the news that presumably triggered the action. Company got new credit facility and 180 days grace period to comply with $1+ price requirement from NASDAQ. After news QRCP was sold off but was holding $0.60. Late in the day drop to $0.59 was not what I wanted to see, but it didn't change my overall assessment of QRCP short/middle term potential. Plus, QRCP volume was quite low today.