Let Them Come In

Be patient with your buy orders. The market isn’t going to crater; but you never know. It’s the fear of “you never know” that allows stocks to drop, precipitously, without net.

I am very interested in buying back YELP, TRLA and GOGO. However, I’m afraid the risk is too great down here, heading into earnings. I have to make a conscious decision: do I risk a lot here, in speculative names, with +58% gains for the year?

The answer is, as always, YES. But not in the social media space.

Instead, I favour the refiners, low brow biotech stocks and the blackest oil the earth can produce. I’m still long ridiculous amount of BALT, which is more of a play on smaller boats, than big. Let it be noted, the rates for Handysize and Supramax ships haven’t gone down like Capesize in recent weeks. Because of this, shares of BALT have held their own and should continue to do so, as long as rates remain elevated.

By the way, MTH reported very strong numbers. I like MHO and AMBC, as plays for housing.

In short, I am fully invested, leveraged to the hilt, down 1% for the session. Ultimately,  I believe the market will trade up from here. But, I am fully prepared to ride it lower first.