Choppy markets are the death knell to sloppy investors. It is almost impossible to time this market, so why bother?
Obviously, my bias is strictly to the downside. However, I do have a variety of long positions, that I have outlined, to hedge against my shorts. I cannot stress this point enough.
With my money, I might buy more Barnes & Noble, Inc. [[BKS]] and KB Home [[KBH]] here. I like BKS, based upon fundamentals. And, I like KBH because it’s nonsensical.
In addition, I will be selling out my Hansen Natural Corporation [[HANS]] position. I bagged a quick 15%+. I’m out. With the proceeds, I will buy more Chipotle Mexican Grill, Inc. [[CMG]] . It’s a bit of a risk. However, should CMG get their act together and report good numbers next quarter, the stock will rip the heads off of short sellers’ necks and sprint to $100, easy.
Once again, tech is strong, led by Research In Motion Limited (USA) [[RIMM]] and Co. Also, Ctrip.com International, Ltd. (ADR) [[CTRP]] is smoking higher on a good quarterly number. Focus Media Holding Limited (ADR) [[FMCN]] might be a trade off of it, or not.
Finally, I want you to understand something. The whole write-off business is going to crush New York’s fiscal budget, for years to come. 20% of New York’s revenue is derived from the banks. I got some news for you: because of the write offs, the banks will be able to operate tax free for years to come. Where will NY and NYC get their revenues from?
Answer: sue the banks.
Top picks: BKS , CMG , short Cathay General Bancorp [[CATY]] .If you enjoy the content at iBankCoin, please follow us on Twitter