Bucket shoppe operators over at Jeffries are calling the crisis in Europe as “the next Lehman event”, this time without TARP. Naturally, the trials and tribulations of Europe affect us greatly. Because of this, you must be careful where you place money. Under no circumstances will I buy bank stocks. However, I happen to agree with Cramer: now is a good time to buy tech.
Due to fortress balance sheets, tech will enjoy premiums in the coming months, as consolidation rips through the industry. If the world banking system stays afloat, there will be deals made in the tech sector. Bank on it.
My favorites are SWKS, MU, AMD, VMW, CIEN and today’s new buy FFIV. They are all takeover candidates and all down big from the highs. If I am right here, I will be beating you to death with your gold bars by X-mas.
Regarding FFIV, the seasonality data for October, discussed inside of The PPT weeks ago, is insane. I am a buyer into October seasonality. At the present, I am half in, loaded with tech. In my personal, I have a bullish bias, with a TZA hedge.
NOTE: I trimmed more WNR today;
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Europe finally showed some signs of reason, or am I delirious from exhaust fumes? Talking eurobonds?
ru done with WNR?
for now, I am light on WNR.
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Just trimmed my FAS LONG by about 80% (~ +3% profit)!!!
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FAS LONG? How ballsy.
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Just added TYP LONG !
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LOFL!
Ballsy and… insolent?
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…just trading vehicles, Jake !
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Nothing more !
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(Alf stabs Jakegint with a BLACKWING 602, leading to a wild explosion)
So … let’s recap shall we ?
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This morning I took 80% of my FAS LONG off (~ +3% profit) !
I have added significantly to my existing TYP “SHORT” (ie. averaged DOWN) !
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Now NET SHORT …with a bit of a LONG “hedge” !
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I am NOW Currently :
~ 54% SHORT (via TYP avg. $22.60)
~ 10% LONG (via FAS “hedge” avg. $12.19)
~ 36% CASH
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We shall see !
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Basically, you don’t have shit going on. With that sort of mix, your gains or losses will be minimal. I don’t blame you, frankly. And I am 50% cash here too. But let’s not pretend you are hitting homeruns when in fact you are simply in the batters box with bat on your shoulder.
Not going for “Homeruns” here … and don’t think I have been “pretending” to do that ! fwiw
I am more than content to “Pete Rose” this Market by consistently hitting “Singles” and the occasional “Extra Base Hit” !
You said yourself this is a hard Market to trade. If I get “hit by a pitch” … I’ll just take “1st base” … and wait for my next at bat. As it were !!!
Don’t you just love a good Baseball metaphor ? 🙂
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Why using FAS? Instead of ERX, TNA, EDC etc
Bank underperform status. And. If we go down they will lead
I use FAS because it works pretty well for what I’m doing.
That is … swinging with a trading bias either LONG or SHORT !
As I said in a previous post (look above) … they’re just trading vehicles !
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In 2 months, both TYP and FAS will be trading down – irrespective of where the markets would be then.
… in 2 Months I will have been in-and-out of them 50 times !
Try to keep up, okay !
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All this perfect market timing you do every day and you only managed a 3% gain in a 3x ETF?
… “perfect market timing” …
You words not mine !
I got no problems consistently taking a 3% profit on 2 or 3 day trade … over and over and over and …
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You = Your
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Sorry !
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Can you update your thesis on WNR and CVI just so we can understand what has changed and why?
will do
Then, why does Raj and Caj quote Chess swine to follow copper down, if we have to buy Tech here?