Out Fox The $treet

Though both portfolios ended down for the day, I consider it a great day when they outperform the market by roughly 30 basis points. Its tough to have an aggressive portfolio that beats the market on down days. Especially when the Russel 2000 loses 1.2%. Typically the smaller caps and more aggressive stocks get hit very hard when the market drops nearly 1%. A couple of hedging moves helped reduce the risk after a large run in the markets for the first 3 weeks of September. Shorting lululemon athletica (LULU) in the Opportunistic portfolio has hedged some of the loses from today though Cramer telling people to buy it on his Stop Trading segment yesterday has limited the downside. Also, the Drexion Small Cap Bear 3x (TZA) has been a significant gainer the last 2 days providing huge protection. After 3 days of moderate losses, the market is finally in position to regain the upward trend. Any weakness tomorrow morning should likely be bought especially around 1120 in the SP500 or even...

As the market remains in overbought levels, purchases the Drexion Small Cap Bear 3x (TZA) to hedge some of the long positions we have in the Growth, Hedged Growth, and Opportunistic Portfolios. This was done in order to protect and extend capital gains in stock that we expect to continue higher while providing some protection for a downturn back to the breakout levels around 1120 to 1130 on the SP500. With the SP500 only having one major down day in the last 3 weeks, it was just time to hedge. This is on top of a short in LULU and some pruned positions in ICICI Bank (IBN) and Riverbed Technology (RVBD) over the last few days. Now looking at some positions to add to the portfolio on the next drop which we don't expect to be more then 2-3% before the market enters the traditionally strong November to April period of a mid-term election. Of course, you never know with October so keep a close high on whether support holds.