The yen is ripping higher again. Some people, like Hugh Hendry, believe it is heading for $60, due to massive repatriation of capital by big multi-national Japanese companies. By doing so, a domino effect will ensue and a total and complete collapse of the Japanese economy. I have no idea if this will occur. However, there are people putting billions of dollars into this theory.
So far, the market is acting as if nothing happened today, trading listlessly without any semblance of passion. My AKS position is up, thanks to AA. I bought it because I thought it could outperform in a bad tape, so far, so good.
My TLT position is ripping higher too, which represents about 25% of my assets. I believe it will trade above $110 by Thanksgiving.
Speaking of which: by no means will I have short positions going into Thanksgiving. If you’ve been reading me for more than 1 year, you know “The Fly” is a HUGE fan of the Turkey Gods. They are powerful and make equities go higher. So, all of my bearish sentiments must be resolved, over the next 2-3 weeks.
I shorted more MELI this morning, based upon the idea that retarded stocks must kneel before profit takers, at some point, similar to what is occurring to the shares of FFIV.
Bill Ackman took stakes in both JCP and FO. The JCP is interesting because of what they did to LIZ. In a nutshell, they bought all rights to the Claiborne brand, thanks to the ineptitude of the LIZ management team. Then, they pulled Claiborne “gear” from Macy’s, in an attempt to lure old seahags to shop at JCP. You know, those who are loyal to the Claiborne brand. I am sure they will make a killing using this strategy.
In closing, foreclosures are being halted across the country, because the paperwork is faulty. Potentially, this can cause a whole new crisis, as the owners and bag holders of MBS can now sue JPM, BAC, WFC or whoever, for selling them mortgages that were not legitimate. One thing is for sure: Halting foreclosures is HORRIBLE for the housing market, as it leaves the cancer in place to fester.
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