We have every reason to sell off, yet here we are hugging flatline. Because of this, I like the market early on.
My favorites today are silver stocks, with the shiny metal lagging behind in the risk trade. My largest and only silver position is EXK. After all of my sales, EXK is now my 3rd largest equity position.
Additionally, I like VMW as it rolls past $100. It’s sort of a mindless strategy, but one that works continuously: buying stocks as they pierce the $100 threshold. They tend to explode shortly thereafter. Naturally, WNR and CLF are still my top positions. As you can see, they are having a good day.
Bottom line: you can play the short squeezes here, because the pain on the short side is great. They have to cover due to margin liquidations. The longer you press the hot iron on their face, the greater the pain. However, I suggest doing so with a low risk profile, keeping at least 20% of assets in cash. We are due for a retracement, at the very minimum. The last thing you want to do is give back hard fought gains to unchecked greed.
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Fellas there seems to be a deal in the debt limit in the works. It seems to be a pretty decent size. This is contractionary if the Fed doesn’t mitigate by increasing the money supply. It will. This is why I think gold and Silver are going up.
http://finance.yahoo.com/news/Debt-deal-Brace-for-spending-cnnm-895214121.html?x=0&sec=topStories&pos=main&asset=&ccode=
It does mean the fed will have to ease up in the same way it eased in the early 90’s when Clinton closed the budget deficit and the Fed went easy, however they weren’t zero bound at the time, so the Fed will be forced to do QE by some other name.
It’s actually pretty decent news for stocks if it’s true.
The shorts deserve irons on their faces.
@J – good points.
‘they’re’ buying july 19 calls in Fly fave, WNR. expecting a quick move
so far 3800 gone, like hotcakes