Market Gains Ebbing, But We’re Going Higher From Here

222 views

China’s big rate announcement and other saber rattling from central bankers sent the market higher this morning, but now the gains are starting to retrace into the afternoon.

This is classic central bank trading.

After all the other rate and QE announcements I can recall, we experienced the same behavior – a big immediate push followed by a strong settling (and even occasionally the markets correcting lower). Historically, this lasts for about a week before we take off like the Hounds of Hell are hot on our heels.

On the news Brent is back above $80, and WTI is following. We’ll get about a week (half week for the holidays?) of puttering around, probably lower. This is going to suck all the shorts and panic money into the fade (“They failed!”). Right in time for next Tuesday or perhaps the Monday thereafter, when approval to increase allotments gets pushed down from management and markets begin the happy process of murdering anyone caught short. Just in time for Christmas.

See you in December.

Not Getting Cocky

207 views

Alright, today was a big day. I was up almost 5%. Strong moves in the oil and energy space and shorts unwinding. Leverage pressed the envelope. Almost everything I had ended higher, in a big way.

But it’s too early to celebrate. BAS is down almost 60% from the top. I sold out quite a lot of the position at the top, which is the only reason I’m still alive. HCLP is flirting with $50 again, but that’s a 30% drop from the highs (again, I was lucky as hell selling out near those). VOC is down 50% from the highs.

This isn’t enough. Big up days need follow through to repair the charts. Short sellers need to be checking their backs at every street corner. That’s the only thing that will scare the carrion birds off the backs of these stocks. And we need the price of oil to carry us along. We need Brent back above $80 and WTI needs to tag along playfully behind (but can’t get too close or the spread will be damaged).

The rest of the market is acting healthy and, despite the exact same concerns about the economy that have been there for five years now, there doesn’t seem to be a fresh wave of cascading data to fret over.

Added To SXCP

130 views

I made purchases of SXCP for $24.64, adding to my position.

My current account balance stands at 118% margin.

My wash sale of NADL was total luck. I got pissed off at them for failing to close the deal with Rosneft so I spiked the ball and stormed off the field. That locked in a 15% loss. Well, the stock is down another 42% from that point. That would have been another 5% loss on the account. Not pretty but I’ll take it.

There is good strength in my positions this morning. BAS is up almost 8%; I’d take that with a grain of salt, it has been flipping 10% week over week, lately. But HCLP and VOC are both up about 4%, CCJ is up another 1%, and BTU is higher by 2%. AEC is taking a breather, now nearing $22. So is ETP, pushing on $68.

My holdings are AEC, CCJ, HCLP, BTU, BAS, ETP, VOC, SXCP, and physical silver.

Uranium Spot Prices Continue To Soar

228 views

Approximate prices for the uranium spot market lifted another 5% from last week. We’re now well back into the $40’s.

This is what I have been waiting for, for years now. CCJ is still one of my larger holdings, and there is still time left in the year to have it be a big hit. But even if it doesn’t work out before 2014 comes to a close, 2015 will work fine too.

Japan set off the stampede. It ends gloriously.

AEC Up 7% Today

163 views

I mostly got out of the multifamily trade earlier this year, by selling out of MAA. MAA was a position built from shares of CLP that were swapped out in a merger between the two companies. CLP and AEC were an investment I had made in the multifamily space in 2011, betting that rental occupancy would remain at record highs and rents would experience pressure, while more generally mortgage generation and homeownership would continue to languish.

That worked out pretty swimmingly.

But I did make one…I wouldn’t call it a mistake, per say, but…misjudgment. I did not anticipate how much the street hates AEC.

I guess AEC’s CEO got on the dark side of Wallstreet back in the late 90’s. Not just Wallstreet; I had some people perchance on my articles hyping up AEC who hated the CEO so much, they took the time to tell me and anyone else reading. I guess I can respect that. Blackballing those that have crossed you is an American tradition of sorts. I do it all the time. No big deal.

But I was willing to give AEC a chance, and it has mostly paid off as well. In addition to collecting 5% annually for four years, AEC is now up about 35% from my entry price. Not an APC or RGR or HCLP by any means, no. But respectable.

AEC is up 7% today, continuing a big push it has been making in the second half of this year. AEC has been trading at a serious discount to its peers in terms of stock premium, but has been making moves to force recognition of that value.

If AEC can hit above $23, that will have put AEC at effective returns of about 16% compounded annually, since 2011. Not bad, I can live with that.

Up For The Week, Somehow

197 views

The market may be down, but somehow I ended up a small sum. My account is up 3% today, erasing the nasty tumble I had play out over the past 48 hours.

I’m constructive in oil and energy names, but that applies more to energy services and complement plays than it does to pure oil bets. I’m also very adverse to deep sea drilling, because it’s expensive and easily priced out of competitiveness.

I’m getting excited about uranium for the first time in years. I’ve been enthusiastic up until now, but there was something missing. The fuel run is exactly what the doctor ordered.

Enjoy your weekend, my good man or lady. The 9th floor is closed for business, until Monday.

Market Gains Ebbing, But We’re Going Higher From Here

222 views

China’s big rate announcement and other saber rattling from central bankers sent the market higher this morning, but now the gains are starting to retrace into the afternoon.

This is classic central bank trading.

After all the other rate and QE announcements I can recall, we experienced the same behavior – a big immediate push followed by a strong settling (and even occasionally the markets correcting lower). Historically, this lasts for about a week before we take off like the Hounds of Hell are hot on our heels.

On the news Brent is back above $80, and WTI is following. We’ll get about a week (half week for the holidays?) of puttering around, probably lower. This is going to suck all the shorts and panic money into the fade (“They failed!”). Right in time for next Tuesday or perhaps the Monday thereafter, when approval to increase allotments gets pushed down from management and markets begin the happy process of murdering anyone caught short. Just in time for Christmas.

See you in December.

Not Getting Cocky

207 views

Alright, today was a big day. I was up almost 5%. Strong moves in the oil and energy space and shorts unwinding. Leverage pressed the envelope. Almost everything I had ended higher, in a big way.

But it’s too early to celebrate. BAS is down almost 60% from the top. I sold out quite a lot of the position at the top, which is the only reason I’m still alive. HCLP is flirting with $50 again, but that’s a 30% drop from the highs (again, I was lucky as hell selling out near those). VOC is down 50% from the highs.

This isn’t enough. Big up days need follow through to repair the charts. Short sellers need to be checking their backs at every street corner. That’s the only thing that will scare the carrion birds off the backs of these stocks. And we need the price of oil to carry us along. We need Brent back above $80 and WTI needs to tag along playfully behind (but can’t get too close or the spread will be damaged).

The rest of the market is acting healthy and, despite the exact same concerns about the economy that have been there for five years now, there doesn’t seem to be a fresh wave of cascading data to fret over.

Added To SXCP

130 views

I made purchases of SXCP for $24.64, adding to my position.

My current account balance stands at 118% margin.

My wash sale of NADL was total luck. I got pissed off at them for failing to close the deal with Rosneft so I spiked the ball and stormed off the field. That locked in a 15% loss. Well, the stock is down another 42% from that point. That would have been another 5% loss on the account. Not pretty but I’ll take it.

There is good strength in my positions this morning. BAS is up almost 8%; I’d take that with a grain of salt, it has been flipping 10% week over week, lately. But HCLP and VOC are both up about 4%, CCJ is up another 1%, and BTU is higher by 2%. AEC is taking a breather, now nearing $22. So is ETP, pushing on $68.

My holdings are AEC, CCJ, HCLP, BTU, BAS, ETP, VOC, SXCP, and physical silver.

Uranium Spot Prices Continue To Soar

228 views

Approximate prices for the uranium spot market lifted another 5% from last week. We’re now well back into the $40’s.

This is what I have been waiting for, for years now. CCJ is still one of my larger holdings, and there is still time left in the year to have it be a big hit. But even if it doesn’t work out before 2014 comes to a close, 2015 will work fine too.

Japan set off the stampede. It ends gloriously.

AEC Up 7% Today

163 views

I mostly got out of the multifamily trade earlier this year, by selling out of MAA. MAA was a position built from shares of CLP that were swapped out in a merger between the two companies. CLP and AEC were an investment I had made in the multifamily space in 2011, betting that rental occupancy would remain at record highs and rents would experience pressure, while more generally mortgage generation and homeownership would continue to languish.

That worked out pretty swimmingly.

But I did make one…I wouldn’t call it a mistake, per say, but…misjudgment. I did not anticipate how much the street hates AEC.

I guess AEC’s CEO got on the dark side of Wallstreet back in the late 90’s. Not just Wallstreet; I had some people perchance on my articles hyping up AEC who hated the CEO so much, they took the time to tell me and anyone else reading. I guess I can respect that. Blackballing those that have crossed you is an American tradition of sorts. I do it all the time. No big deal.

But I was willing to give AEC a chance, and it has mostly paid off as well. In addition to collecting 5% annually for four years, AEC is now up about 35% from my entry price. Not an APC or RGR or HCLP by any means, no. But respectable.

AEC is up 7% today, continuing a big push it has been making in the second half of this year. AEC has been trading at a serious discount to its peers in terms of stock premium, but has been making moves to force recognition of that value.

If AEC can hit above $23, that will have put AEC at effective returns of about 16% compounded annually, since 2011. Not bad, I can live with that.

Up For The Week, Somehow

197 views

The market may be down, but somehow I ended up a small sum. My account is up 3% today, erasing the nasty tumble I had play out over the past 48 hours.

I’m constructive in oil and energy names, but that applies more to energy services and complement plays than it does to pure oil bets. I’m also very adverse to deep sea drilling, because it’s expensive and easily priced out of competitiveness.

I’m getting excited about uranium for the first time in years. I’ve been enthusiastic up until now, but there was something missing. The fuel run is exactly what the doctor ordered.

Enjoy your weekend, my good man or lady. The 9th floor is closed for business, until Monday.

Previous Posts by Mr. Cain Thaler