Out of Solar

The sun is too hot for me to bear. I broke even on TSL and moved on.

EVERYTHING YOU NEED TO KNOW IS HERE

When the bubble stocks burst a few months ago I created a ‘bubble basket’ designed after the criteria that David Einhorn talked about in his cryptic warning to investors, regarding ‘high valuation’ stocks. The index is made up of about 100 stocks and it slid from par (100) down to about 80, when the market bottomed. Since then, the ‘bubble stocks’ have been leading the market higher, as that index surged from 80 to over 106 last week–making up all of its losses.

Well, today it is getting hammered, down nearly 3%. If your portfolio is getting racked today, you’re probably overweight too many ‘bubble stocks’ and stand at risk for a repeat of April of 2014.

bubble

Risk is off. I sold out of LEJU and booked a 16.5% gain in the process. Thus far, for today, I sold out of BALT, RBCN and LEJU.

Lines in the Sand

I sold out of BALT for an 8% one week loss. I also sold out of RBCN, for a 1.5% loss. I sold RBCN because of the pin action in GTAT, after an analyst downgrade. Naturally I disagree with him, but the price action rules the roost. With regards to BALT, lines in the sand will be adhered to, no matter how I feel about the stock.

In the past I’d average down in BALT and possibly end up banking coin on this trade. But things are different now and I cannot afford major draw downs. With the proceeds, I will be looking to buy dips. But I will be patient.

On the other end of the spectrum, my LEJU position is now up more than 15%.

HAR, HAR, HAR: HAPPY FOURVE OF JURAI

For our great nations birthday, I bought shares of Chinese online retailer LITB, in the hopes that it might dislodge one or two American retailers. I raised funds by selling out of PE, adhering to the strictest money management practices north of Krum Rock.

Now you go have yourselves a great 4th of July. Stay away from those damned fire bombs and be sure to limit yourselves to just three 40 ounces of malted liquor.

Back on the Boat

I sold out of TSL for a 6.5% profit.

I bought back BALT, following an explosion to the upside in Capesize rates. China is red hot now.

A Chinese Swap

I sold out of my TEDU, locking in magnanimous 30% gains, swapping into an average up into the wonderful and whimsical shares of TSL.

Target: $14-15.

NOTE: I started a small position in ECYT too.

Take the Money

We’ve enjoyed estimable gains these past few weeks. To indulge oneself in the felicity of his dreams is to be long the stock market during times like this. Sadly enough, my TEDU reversed off its $12 high, but still stands at a robust +30% from my basis in little more than a week.

All of the David Einhorn bubble basket stocks are through the roof today, led by FEYE and SPLK. It’s an important distinction because not much else is working. It’s suggestive of the sort of chicanery one would expect in a tape that is readying to rip heads and peni off. If I was a little short seller, discussing the bold characteristics of Wall Street 2.0, I’d cease to exist at once. There isn’t any hope for a bear in this tape.

Might I suggest an alternative?

Despite it being 90 degrees outside, go make yourself a fire and pull up a chair close by. Drink some of your finest brandy and toast to better days. After you’ve completed your brandy, wrap yourself in a thick burlap blanket and toss yourself into the fire. The Lord of Light will appreciate this sacrifice and look after your loved ones when you’ve been reduced to a small piece of heart muscle.

As for me, I am up about 0.5% for the day, lowering my losses to manageable levels. Very soon I shall up the ante and make larger bets.

UPDATE: I sold 25% of TEDU position and bought PRTA.

A Sunny Swap

I sold out of GIMO for less than a 2% loss (I have zero patience for underperformance these days) and swapped those dollars in the retarded shares of TSL.

Out of Solar

The sun is too hot for me to bear. I broke even on TSL and moved on.

EVERYTHING YOU NEED TO KNOW IS HERE

When the bubble stocks burst a few months ago I created a ‘bubble basket’ designed after the criteria that David Einhorn talked about in his cryptic warning to investors, regarding ‘high valuation’ stocks. The index is made up of about 100 stocks and it slid from par (100) down to about 80, when the market bottomed. Since then, the ‘bubble stocks’ have been leading the market higher, as that index surged from 80 to over 106 last week–making up all of its losses.

Well, today it is getting hammered, down nearly 3%. If your portfolio is getting racked today, you’re probably overweight too many ‘bubble stocks’ and stand at risk for a repeat of April of 2014.

bubble

Risk is off. I sold out of LEJU and booked a 16.5% gain in the process. Thus far, for today, I sold out of BALT, RBCN and LEJU.

Lines in the Sand

I sold out of BALT for an 8% one week loss. I also sold out of RBCN, for a 1.5% loss. I sold RBCN because of the pin action in GTAT, after an analyst downgrade. Naturally I disagree with him, but the price action rules the roost. With regards to BALT, lines in the sand will be adhered to, no matter how I feel about the stock.

In the past I’d average down in BALT and possibly end up banking coin on this trade. But things are different now and I cannot afford major draw downs. With the proceeds, I will be looking to buy dips. But I will be patient.

On the other end of the spectrum, my LEJU position is now up more than 15%.

HAR, HAR, HAR: HAPPY FOURVE OF JURAI

For our great nations birthday, I bought shares of Chinese online retailer LITB, in the hopes that it might dislodge one or two American retailers. I raised funds by selling out of PE, adhering to the strictest money management practices north of Krum Rock.

Now you go have yourselves a great 4th of July. Stay away from those damned fire bombs and be sure to limit yourselves to just three 40 ounces of malted liquor.

Back on the Boat

I sold out of TSL for a 6.5% profit.

I bought back BALT, following an explosion to the upside in Capesize rates. China is red hot now.

A Chinese Swap

I sold out of my TEDU, locking in magnanimous 30% gains, swapping into an average up into the wonderful and whimsical shares of TSL.

Target: $14-15.

NOTE: I started a small position in ECYT too.

Take the Money

We’ve enjoyed estimable gains these past few weeks. To indulge oneself in the felicity of his dreams is to be long the stock market during times like this. Sadly enough, my TEDU reversed off its $12 high, but still stands at a robust +30% from my basis in little more than a week.

All of the David Einhorn bubble basket stocks are through the roof today, led by FEYE and SPLK. It’s an important distinction because not much else is working. It’s suggestive of the sort of chicanery one would expect in a tape that is readying to rip heads and peni off. If I was a little short seller, discussing the bold characteristics of Wall Street 2.0, I’d cease to exist at once. There isn’t any hope for a bear in this tape.

Might I suggest an alternative?

Despite it being 90 degrees outside, go make yourself a fire and pull up a chair close by. Drink some of your finest brandy and toast to better days. After you’ve completed your brandy, wrap yourself in a thick burlap blanket and toss yourself into the fire. The Lord of Light will appreciate this sacrifice and look after your loved ones when you’ve been reduced to a small piece of heart muscle.

As for me, I am up about 0.5% for the day, lowering my losses to manageable levels. Very soon I shall up the ante and make larger bets.

UPDATE: I sold 25% of TEDU position and bought PRTA.

A Sunny Swap

I sold out of GIMO for less than a 2% loss (I have zero patience for underperformance these days) and swapped those dollars in the retarded shares of TSL.

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