Simple math for a winning portfolio!
Gold and energy = your natural hedge. Energy stocks have hit a temporary bottom, and are flying high everywhere. I like gold since about 2 weeks ago, since finally it is back to being an inverse correlation play against the broader markets. In other words, market goes down, gold should go up. Fundamentally, gold is your haven in times of inflation. Goldcorp Inc. (USA) [[gg]] , [[gld]] , Eldorado Gold Corporation (USA) [[ego]]
Minus the banks = now that we can’t short banks or financials, that eliminates the possbility of a powerful short squeeze ( stupid SEC. they are messing with laws of supply and demand, and therefore have taken away one of the BULLS powerful weapons). Therefore, sell your bank stocks, or short them via ITM puts. See Adam’s tab for more details: http://www.ibankcoin.com/adamblog/index.php/2008/09/22/skf-riff/#comment-809
Multiply medical stocks = beef up your portfolio by averaging in to the medical or any other health related sector. Natus Medical, Inc. [[baby]] , Skilled Healthcare Group, Inc. [[skh]]
Remember, keep your positions small, in other words, whatever sizing you were using in 2007, trade at 1/2 of that. Try not to get your portfolio stuck in 1 sector; diversify it to include some of the hedge-sectors I mentioned above.
aLoha!
-gio-
Oil up $25. wow.
gio,
too late to get in gold? wait for pullback?
JD… yeah, gold is up big today. I’d wait for a pull-back. Since I am already long gold, I might short one gold stock against my own positions.
NDX getting hit.
Vix went green.