Yesterday I bought some TWM to hedge my egregious small cap garbagio stock portfolio. The thinking here is to hedge a downturn in the Russell 2000, should these stocks turn south.
If the conventional wisdom of “sell in May, go away” turns out to be foolish jibberish in this current market, my sense is that my garbagio stocks will go up faster than my TWM hedge goes down, thus allowing me the luxury of banking more coin, whilst reassessing the battlefield before executing a SELL on TWM. If, however, the former adage is “gospel”, then at least I’m cushioned somewhat on the downside, thereby achieving what is also known in the venacular as, a “soft-landing”.
Just know that these things often do not work out according to plan, so caution is still advised on new buying here.
That simply stated, and in view of the fact that this market has gone ape-shit in the past two months, we have some new bannana breakouts in a number of sectors:
If you like sushi, try Japanese bank MTU, currently at $6.54 (caution: this is not a small cap!). Perhaps you will develop an appetite for Japanese investing….or, not.
Biotech: REGN, $15.65 +3.37%
Computers: SRX, $16.75 +7.79%
Electronics: NEWP, $5.59 +7.92%
Oil: ROSE, $9.10 +21.17%
REITs: YSI, $3.84 +11.63%
Software: TLEO, $15.17 +11.54%
(Disclaimer: investing in small cap garbagio stocks is like pouring gasoline on yourself, then asking for free cigarettes from the Taliban (why, oh why, would you do that?). Know the risks, especially how much coin you are willing to lose from your “avarice-green” stained fingers (that is a color, like “burnt sienna”). This author does not endorse or deny the profitablity of the stocks mentioned above. No guarantees are stated or implied with this information. Trade at your own risk.)
If you enjoy the content at iBankCoin, please follow us on Twitter
