Earlier today I suggested purchase of bond funds, specifically for the month of January. Correct me if I am wrong, but we’re still in December, no? I pardon your transgressions and forgive you of trespasses. Now is not the time for bond funds, small pleb. Instead, it is time to delve, mind you, into commodity related stocks. I am pleased with the action of my metal positions: AKS and CENX. For the most part, aluminum has been one of the few disappointments of 2010, due to excess supply in China. However, as growth commences, so will demand. CENX is a leveraged play on aluminum. Should prices spike, so will CENX.
I’m liking gold and silver on this dip. My favorite is EKX, of course. Additionally, I am a HUGE fan of REXX, at these levels, or anything under $15.
Essentially, “The Fly” is all about winning, irrespective of monetary gain. Oh, in case you were wondering, yes, I am riding my TTWO position into earnings this evening.
A great man once said, “No balls, no babies.”
NOTE: I trimmed my FTK position down to 100k.
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First!!
Developing
You are reading my knotted cerebelli, Tall Pleb.
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“No balls, no babies.” WTF? I will be sure to put that on my 12631 t-shirt.
^ It’s a Mark Cuban saying.
Fly,
Question for you – do you hold AKS into the new year with its crappy seasonality Avg Return in January? I purchased said stock in October for its under performance of broader market and it has performed admirably since: +20%. With that said, it is still down -31% TYD. Not that I am a super long term holder of stocks, but AKD positive seasonaility starts back up in March. Might we possibly get consol/run-o-mill pullback until then? It has outperformed S&P October-present and is BTFO this week on the weeklies. The 16% SI doesn’t hurt.
maybe, maybe not.
All depends on the action from now until then.
you mean exk, i assume
Updated SPX levels
http://chartingsense.blogspot.com/2010/12/s-500-levels-spx.html
http://chart.ly/r4y7sub
RARE , and Bearish, “Domed house and three peak ” pattern in Dow futures hourly chart.
Also, were still holding a bullish megaphone bottom in the Vix index daily chart. http://chart.ly/khctkb6 . This should send the Vix above 30 by early january.
I have to imagine that the confluence of these 2 patterns will be good for TLT, and other bond funds.
Party on, Indeed. Stocks are rising because the economy is actually recovering (lo, and behold!)..
If the 10 y Tsy “normalizes” and goes to 5% in 2011, the S&P would “only” need to rise about 19% to offset the negative effects of rising rates. This scenario is certainly within the realm of possibility.
If the market does pull back here, and I get the opportunity, I will load up on materials, energy, tech, and industrial stocks as we go into 2011.
Of course, if we get a shock out of Europe, like a couple of soverrign defaults, then all bets are off.