The tape was terrible today. We gapped down strong at the open, then shot up sharply in the early morning, just to fall all the way back down at the close. The market has direction but unfortunately its to the downside. I mean think about it, today was a "Merger Monday" from 2007...3 big deals went down today and traders just ignored them. In 2007, the DOW would be up 200+ points.
As for today's trading, I netted (capital gains minus commission fees) +$242, from realized/closed day trades. As for unrealized/open positions, I was up $228, with strong gains in FAS & PCR; however, FXI and CY are slacking.
Tomorrow will be interesting but in defense you can either buy the dollar (UUP), gold (GLD), short equities, or hold cash. I choose the latter; however, I wish I would have went long UUP early this year. I think the market is getting very thin to short; however, the shorts are making a killing, so just in case I have a few targets to go after. My focus will be on REITs, more specifically on Retail and Industrial REITs. If you believe in the European crash, DRR, will get you short the Euro (2x the inverse of the euro). EEV, is an ultrashort that will get you 2x the inverse of EEM, which is an emerging markets ETF. The thought here of course is the when the U.S. sneezes, the rest of the world catches a cold. I believe that 99% of the way but I like China and the China stimulus. However, China will need to have 7% GDP growth and the stimulus seems focused on consumers, investors (no capital gains tax), and business (especially banks with lending). I will be interested on seeing China's inflation data tonight.
I currently have no short positions but will post positions/names soon; however, as you know, I like cash better.
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Watch out...Tiny Tim might have public comments tonight...
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Treasury Secretary Tim Geithner will speak to the House Democratic Caucus tonight to address the bank "stress test" process.
NO!!!!!!!!!!!!!!!!!!!!!!!
ReplyDeleteFigures Tiny Tim wants to pull that bs when I got long some financials....you still holding apple here? It's looking cheap
ReplyDeleteCheck out the following CNBC link:
ReplyDeletehttp://www.cnbc.com/id/29600011
Doug Kass standing by his market bottom prediction - very interesting. Long and short of his discussion, SP approximately 9x earnings, when analysis of historic depressions has produced market bottoms when SP trading near 11x earnings. 11x earnnings would represent SP at 800.
Interesting perspective.
Yeah AAPL has gotten an 18% haircut in the last few weeks. Normally my personal rule is buy AAPL below 80. I might put a couple limit orders in at 80 in case we have a sell-off later this week. They are still sitting on $30 billion of cash.
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