This obviously has implications on single names. I have used a tool I have built to identify stock where they may be the technicals to take advantage of the drop. My tool threw out Anglo American, Prudential, Exxon Mobil and IBM as good technical shorts should the fall continue. This is in addition to the Lloyds and Bank of America shorts I added previously. It makes sense that financial and oil related stocks are the first to be hit.
Short term it looks like the S&P is trading in a range between 1,100 and 1,081 (March 2010 future). For this reason, I cut half my short S&P. I also lost conviction on the Ford position and closed it at a small loss. I will look to a break above 1,100 reassess my shorts. In the meantime, I will be looking for a break of 1,081 to add to my shorts while keeping a close eye on the the single name charts for support areas to close my positions.
I have changed the structure of the portfolio table to make it easier to follow. I have added a hypothetical account balance of £10,000 and you can track the performance by looking at the current value of the portfolio on the top left of the caption. It is also easier to assess the margin requirements of putting on similar positions with most online brokers.
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