Taper Scenarios

If Bernanke doesn’t taper, TLT will rip higher, along with stocks, by at least 1.5%.

The most likely scenario is a $10-15 billion taper, which might be market neutral to moderate weakness. If, however, the great bearded one decides to “correct” the market with a taper greater than $15 billion, you are going to regret the day you were conceived. Because of this, I have a 40% cash position, listening to Chopin, throwing the bone around the house for the dog.

As an aside, it looks like the new iPhone is getting great reviews, which bodes well for GTAT and RBCN, if in fact sapphire is being used for the home button. People who know how to do channel checks are suggesting pricing is firming, so you might want to keep your eyes on those two for explosive moves, especially RBCN.

FLTX is doing a secondary today. That’s another name that I like for the long term, along with WDAY.

Lastly, I want to own MHO and OWW–but at slightly lower prices. It’s worth noting, the BDI index has been shooting higher daily. My favorite dry bulk shippers are EGLE, SBLK, GNK and DSX.