I like the airlines here, as a defacto hedge against my longs. I know that sounds absurd, since I have zero oil stocks. But the airlines are going up as oil drops. When oil drops, for the most part, stocks follow suit. I am interested in two names, one of which will be revealed soon.
I want to buy ARMH and add to my positions in NXPI, NUAN and AVGO, but cannot do so unless people come out of their TLT caves (more on that in a minute). Also, I am keenly interested (pardon the split infinitive) in BIDU, with the stock down huge due to mobile ad model concerns. Apparently, the same thing that is plaguing FB is plaguing BIDU, and a number of internet names. How can they monetize via the smartphone? The more people buy smartphones, the less they use computers; hence, they do not click on ads. Ad revenue is much less via mobile. As a result, everyone is selling BIDU.
You know what company is quite good at mobile?
Moving on, here is the correlation between TLT and SPY, over the past 5 days. It’s almost a 1.00 correlation. In short, before I add to my longs, I need to see money coming out of bonds. I’ve been given a second chance, a reset of sorts, something not granted often on Wall Street. However, I seem to do it all the time. I ebb from rolling disasters and flow towards unparalleled winship, seamlessly, as if it were common place.