For 1 day, I will put aside my grievances with the stock market and call it like I see it. Money is fleeing safety (bonds) and going into risky investments, namely commodity plays. Moreover, money is targeting, specifically, stocks with large short positions, in order to cause pain and anguish to short sellers.
Within the tech space, I am seeing melt ups in a variety of semis, thanks to a huge ramp up in end user demand. When I say “end user demand,” I mean dumbass people, living month to month off credit cards, are buying iPads, Macs, smartphones and big ass teevees. Because of this, semiconductor foundries are smoking hot. Remember when I told you foundry utilization was at 30% last year? Well, fast forward, we are nearing 90% and in some cases 95%, forcing the price of chips higher, especially DRAM and Flash.
The whole semiconductor food chain benefits from higher demand/prices. However, I like to play the chain at the root, where shit it made and tested.
My favorite plays are TriQuint Semiconductor [[TQNT]] , Amkor Technology, Inc. [[AMKR]] , Advanced Semiconductor Engineering (ADR) [[ASX]] , Cadence Design Systems, Inc. [[CDNS]] , MEMC Electronic Materials, Inc. [[WFR]] and [[SPIL]] . So you know, on The PPT, I have the entire foundry watchlist for public perusal.
Anyway, thanks to this melt-up, my [[TLT]] and [[VXX]] positions are melting down, like cheap candles in whorehouse. But, I am making up for said losses, thanks to sharp advances in POSCO (ADR) [[PKX]] , ICICI Bank Limited (ADR) [[IBN]] , TriQuint Semiconductor [[TQNT]] , General Cable Corporation [[BGC]] and Flotek Industries, Inc. [[FTK]] . With regards to SandRidge Energy Inc. [[SD]] , it will be a slow roll back to respectability. However, without a doubt, acquiring Arena Resources, Inc. [[ARD]] will greatly diversify their business into proven oil fields and double free cash flow. Long term, if the deal can get done at $40, I think SandRidge Energy Inc. [[SD]] will kick ass.
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Look at percentage loss in tlt, then get back to me and say “blood bath” with a straight face.
TLT is very close to bottom here if it has not already. Stand behind your position until 85.5 is broken.
Agreud on the SD stuff.
Look at the LED makers…. must be all those giant ass credit card teevees!
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Nice update 🙂
Great contract for embedded for Microvisonn (MVIS) today.
Also, love the comment by Kenneth Fisher – http://www.businessweek.com/news/2010-04-05/bulls-increase-with-buyback-spending-signaled-by-profits-surge.html
Fool Buy – UFPT
http://ibankcoin.com/henry_fool/2010/04/05/henry-fool-buy-ufpt/
+40
Odd No?
Only in Amerikkka
Blood bath in TLT no traction there
Point is “10-YEAR TREASURY NOTE YIELD RISES TO 4 PERCENT FOR FIRST TIME SINCE JUNE 2009” if you want to be a jackass and stay in a losing position be my guest, TLT will continue to make new lows.
OMG! 10-year yields haven’t been this high since June 2009! That’s like so very long ago, it’s beyond the experience of all those alive today! Back then, I guess, having yields at such high levels must have been a clear indication of a booming economy, full employment, and rampant inflationary pressures! And obviously, once yields reached such unparalleled levels, they only continued going higher and higher, certainly not falling back to 3.2 percent, or anything crazy like that. It must be so. I’m sure Al would never ever engage in calling people names if it were otherwise!
” Like cheap candles in a whorehouse.”
LMAO!
love this sie!
if there was any chance of an attack on Iran soon,US wouldn’t have just shifted mass #’s of troops from Iraq to Afghanistan past few days
US would need to backtrack across the entire country, to return to the Iraq/Iran border, if Israel was truly about to strike .
15-20$ of every barrel of oil is from speculators betting on an Israel airstrike, which cant happen now.
Its a likely scenario that we could get all those speculators crowding out the door at once–and spike oil all the way down into the 50’s
All this on the day the Semi Cond Indust Asso comes out with data showing weaker MoM sales around the world and a pending Australia Fed Meeting tonight.