As noted last month we have entered 2012 in a more cautious stance. We have only10 trading positions in our portfolio having exited PFF and JNK just this month. We also continue to take additional margin on our trading positions to make them less vulnerable to market downturns. The result of the extra margin means less profits per trading position. Even with that margin and more concentrated positions we continue to have good results. February trading ended with a 13.786% annualized cash flow net of all expenses. Trading costs and margin interest continue to be very low. Our year to date gains are 19.473% net of all expenses and are above our stated yearly goal of 18%. The year to date figure as noted in January's report includes all net gains and losses either realized or on the books as unrealized.
We only traded 8 positions in February and thus the lower number from January. ERF and LO were our leading cash flow producers. We could have traded two additional positions but found the additional profits not worth the risk involved.
Looking ahead to March as of now we will continue to keep a cautious stance from what we see as a highly valued market and do not plan to go beyond our current 10 trading positions. We do continue to explore opportunities for longer term put positions should stocks in our watch list make moves that offer profitable cash flow.
We are in process of posting our entire watch list as we posted the first part earlier this week and will post the second part later this week if time allows.
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