Tuesday, May 18, 2010

BAGAKOAA May 18, 2010 I’ve tried winning and I’ve tried loosing . . .

BAGAKOAA May 18, 2010 I’ve tried winning and I’ve tried loosing . . .

I’ve tried winning and I’ve tried loosing, and I can highly recommend winning, but the market of the last week or so is just plain crazy. I hope you got to see the opening segment of today’s Cramer Show. (Catch it on iTunes if not) Cramer does a great job of explaining how, in the turmoil of the market place right now, no one is paying any attention to the fundamentals of the stocks, sectors or industries. He does so with a great comparison of HD, Home Depot, and Lowes. In the short of it he chooses HD over Lowes. I would too, and after the 2% decline today I would be buying more, but I am not.

I picked up a little more SBUX and a few more shares of AAPL, but I am keeping my hand in the pocket and dare I say it, looking to take some profits. When the great stocks, CVX, IBM, AAPL, INTC, BA, FLS, and the likes can’t seem to get the big boys in, its best to take the money and run.

Due to the flash crash, I did end up taking a lot off the table on the 7th of May. I have been easing my way in over the last week or so, but I have also been hedging my bets with VXX, GLD, SLV, and a double short ETN called DRR. An ETN is an exchange traded note versus the more popular ETF, exchange trade fund. DRR plays a short term short position on the Euro. This ETN goes up in value as the Euro goes down. As you can imagine, it has done well over the last week or so in tandem with the volatility indexed ETF VXX.

Before I head off to slumber land, I am going to take a look at the news release from last night explaining what Mr. Buffet has bought and sold over the last 3 months. His SEC filing 13-F is a quarter filing of all of his position changes exceeding 5%. I will report back with that list either later tonight or tomorrow. I also owe you the Barron’s list of cash rich companies, and I am almost finished on the homework on the list of who might be in a position to make money on the oil clean up in the gulf.

Until then, to quote a famous 70s-80s TV show, “Let’s be careful out there.”

Salve Lucrum


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