Monday, May 10, 2010

BAGAKOAA May 10, 2010 Like trying to fold soup


May 10, 2010 Like trying to fold soup

What do you do with this crazy market. Last night I posted and if you read my blog earlier today, you noted that the 192 billion for the Eurozone was making news in the Asian markets and making some bullish market futures here in the states. Well in the following few hours a consortium of governments, the IMF, and financial entities pulled together a nuclear solution to the European debt issue with a total price tag of more than 1 trillion dollars on top of the 110 billion already provided to Greece. Remember when a billion dollars used to be a lot. Will we be saying, “I remember when a trillion dollars was a lot of money.”, in the near future?

So I left you with what to do with all that money. I did the right things I went on a buying spree about 11:00 last night. Using slightly liberal limit orders I bought IBM, gobs of AAPL, INTC, RPM, CVX, GD, SBUX, and MCD. If you were watching the news today, I looked like a genius. There was one little problem. My limit orders would have worked if the market opened 50 up or 60 up or maybe even 100 up. They did not work as the market opened 380 points up this morning. There I was enjoying my bowl of Cheerios (I own General Mills), knowing I had just made enough money to pay for my opulent Mother’s Day weekend. To my dismay, the market opened so hot that it skipped over my carefully determined limit orders. For example, I had a sizable order for AAPL at 238 a share. Remember the stock closed at 235 and change on Friday. The damn thing opened at 250 a share. Mr. Schwab just laughed at me this morning. I did get in today at 254 a share.

MCD had a good day as same store sales were surprisingly higher in April. It is now my biggest non-cash non-bond holding and I added to it today. If someone told me that a week ago I would said, get outta here.

I also started a new position last night in IDSA, a waste management company that I discovered doing research for WM. I liked it and got the urge and got in only to discover they were reporting today, had a dismal report, have a gob of debt, and no free cash flow. I am out of the stock after a quick 12% loss. Homework homework homework. Shame on me.

Now don’t feel too bad for me as I did get out of VXX last night and that was a good move. I took a nice profit in VXX in almost all portfolios. I was on the fence on gold and silver but stayed in and that seems to have been a good move.

As I mentioned in the blog last night I made the suggestion to my friend to limit in to MRO at 28.50. This morning Chuckie Schwab just laughed at that order so I do not own MRO. 31.50 is a fair value for MRO, I just don’t want to pay it. I did add to my HAS position today and will suggest that my friend get in at the 40 and change price.

Tonight I am going to play with the Barron’s top 500 list and look for some winners. I’ll let you know.

Salve Lucrum, even if you don’t intentionally mean to take them!


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