Getting Out

I waited for a little strength this morning before unloading most of my longs. But, it is done.

I am now sitting on a huge pile of cash, and have no plans to do anything before the weekend. I sold a little Apple Inc. [[AAPL]] , but kept the majority of my position. Keep in mind I bought a huge chunk last Thursday around $124. I’m also still holding my position in Google Inc. [[GOOG]] — cost basis low 420s.

As for my hedges, I sold a few of my puts in the QQQQs at the open and that helped to offset a few losses. Still holding SRS.

Today did not turn out as bad as I predicted. The portfolio is still up from last Thursday, but nonetheless down today.

Comments »

I own it, I was on the wrong side of the trade this week.

Just thinking about my [[UNG]] position is enough to keep me up tonight. But, what’s done is done. Time to focus on my trades going forward, because I guarantee there will be some great trades to be had.

One position that I regrettably own is Amazon.com, Inc. [[AMZN]] , but I’m ready to switch sides immediately.

This one is setting up for a fall:

Speaking of falls, Tim Knight posted a great video on “Two things to remember.”

Also, check out Denninger’s daily video:

[youtube:http://www.youtube.com/watch?v=kLozqoh41F0 450 300]

Comments »

No, not again? These stocks have been ticking time bombs the past few months, just when you think they are ready to pop, Bam! the homo-hammer comes down on you.

Right now I own Valero Energy Corporation [[VLO]] and will add to my position on further strength. The group looks like they may have put in a real bottom, but I’ve been wrong before.

Keep them on your radar:

Comments »

Sold:

VMW @ 30.60 (cost basis @ 27)

NVDA @ 11.63 (cost basis @ 10)

I figure with this run up I should take some profits, plus I’m heavy in tech via AAPL.

Note: Washington Mutual, Inc. [[WM]] is dead.

Comments »

This morning I made a few moves:

1st, I bought more Apple Inc. [[AAPL]] , then I bought more AAPL, then I sold a few positions to buy more AAPL. You see, I want to bath in this stock at these levels. You only get a few chances to buy a company like this on the cheap, and this is one of them.

2nd, I added to my position in [[UYG]] , I even bought a little Washington Mutual, Inc. [[WM]] @ 2.30, but please don’t tell Fly, he hates the company.

3rd, I decided to go out and buy more copper and gold via Freeport-McMoRan Copper & Gold Inc. Freeport-McMoRan Copper & Gold Inc. [[FCX]] . For some reason this stock is near and dear to me, maybe it’s because I use their parking garage when I’m at the Superdome watching my Saints, or maybe it’s because Fly likes the stock, or maybe it’s because the company is trading at an absurd valuation. Anyhow, I bought more.

Note: Akamai Technologies, Inc. [[AKAM]] Looks good above 17.45

update: The WM trade was dumb and I’m out as it looks like the company is dead. (see comments)

Comments »

The last few months solar took a beating on fears that tax credits would expire at the end of 2008. Well that changed as we got word that the senate will provide 17 billion in tax credit extending until 2016.

Now keep in mind that US companies will benefit most from this, so my top picks in the space are: SunPower Corporation [[SPWR]] , First Solar, Inc. [[FSLR]] , Energy Conversion Devices, Inc. [[ENER]] & MEMC Electronic Materials, Inc. [[WFR]] .

However, I think the opportunity to bank some coin lies within MEMC Electronic Materials, Inc. [[WFR]] .  The decline in share price has become absolutely ridiculous, it’s current multiple reflects no growth when in fact the company is growing at a 30% clip over the next five years. This is a company that can’t meet demand!

WFR also has 1.4 billion in cash, no debt, and a historic low 6X forward multiple. With WFR guiding higher coupled with overblown concerns on the closure of the Pasadena plant due to Ike , I say this coiled spring is ready to shoot higher. I’m placing a short term $40 price target on the stock, a 30% increase from current levels.

Now let’s look at technicals:

We have the MACD & RSI turning bullish with STO not far behind, not to mention a nice rounding bottom formation– all bullish signals.

Disclaimer: Long WFR

Comments »