Friday, October 19, 2007

A Nearly Perfect Day

Is it a foolish consistency, or a foolish inconsistency, that is the hobgoblin of small (big?) minds? I'm never sure.

Anyway, I changed my mind, today. I sold 48 shares of GOOG for 650 even. I hope someday to buy them back, under 550. A brief drawdown in a good cause is not a bad thing.

I decided to sell, because I saw a change in the character of the market. With my long years of experience in the business, I detected a declining trend in the averages which accelerated as the day wore on. There was talk of global recession. Nobody knows what's holding some of these markets up. We ought to be able to work up a bear case for Google from that: Google sells to the world. And now the world is a bad place to be.

Of course, if GOOG keeps chugging north, I'll be very sorry that I sold. Because, let it be known, I am a pig. Let's face it: we're all pigs. We just don't want to get slaughtered, that's all.

Niederhoffer said in The New Yorker that he had never had one completely satisfying day in his trading life. Not one day that was perfect.

For me, today was close. Google went up and my cash didn't go down.

1 comment:

Larry Blumen said...

Reference to Victor Niederhoffer: "The Blow-Up Artist," The New Yorker, October 15, 2007, p. 56.