The markets have started to trend a bit lower and there are thousands of stocks that were are now down 10-20% or more. Many of which are great companies who had terrific results but were clearly overbought at their recent highs, including, say, PANW which I was adding to earlier this week. Two others were SPLK and ZEN, both of which I’ve nibbled on some starter positions.

On the other hand there were thousands of stocks that had rallied with the broader markets off their December lows, many of which are not so great companies who have not had great results and were clearly overbought at their recent highs and are now down big, including, say, Dycom which I let go of earlier this week for a loss. We might want to find some shorts out there in this category.

I’m in a position in the hedge fund where I don’t mind if the markets rally (so that my net long portfolio can also rally) but I’m also in a position that I’m looking to scale into my longs (slowly in drabs and a bit more aggressively if the markets would fall another 3-5% from here).

I continue to be patient and am not what I’d consider to be “fully” invested in the hedge fund just yet.

Also, just a note that I trimmed a few of the DELL call options, just a few of the ones that are highest priced as I have big profits in them and want to cut down their size.