Thursday, November 04, 2010

BAGAKOAA; Got time for a quickie?

I was out celebrating tonight so I will keep this short. It was a great day it should have been yesterday but we will take it a day late. The fed announcement yesterday resonated well with markets all over the world and woke up the market today with a 100 point opening in the Dow. Then we had a bit of short squeeze to bump up the market another 50 points or so which pulled a little money off the sidelines to finish nice and strong. This is making my January 3, 2010 prognostication looking a bit interesting. There were several opinions that this leg of the rally (a rally we called here on September 9, 2009) could see a 15-16% upside between now and the end of the year. I only need 9% to make my guess happen. Now that would be cool after the year we had. You can go back to the January 3, 2010 post called The Year Ahead to see the guess.

The SL Portfolio pin action today.

A shortened lunch allowed me some time to do some surgery on many of our portfolios today. Most of these trades did take place in the SL portfolio, but some were in other portfolios.

We added to our long position on NAK. We initiated a new position on CYD China Yuchai International Limited, through its subsidiaries, manufactures and sells diesel and natural gas engines in China and internationally. The company's engines are used in light, medium, and heavy-duty vehicles, as well as in generator sets, marine, and industrial applications. It also offers diesel power generators that are used in the construction and mining industries; special vehicles, which include waste transfer equipment, construction dumptrucks, demountable carriage dumptrucks, and pendular dumptrucks; and diesel engine parts. The company distributes its products directly to auto plants and agents. The company was founded in 1951 and is based in Singapore, Singapore. We did that via some February $30.00 call options.

We closed out all of our CNO options basically even. We were not happy with the performance and its taking for ever to head in the right direction. We added to VLCCF as we continue to see the shipping sector and this equity improve. We added to WM today. We got out of ITW, Illinois Tool Work at a very small loss. We added to our AMZN position. Now we added AAPL to several of the portfolios today but took some profit in the SL portfolio on this stock. We were approaching 35% gain and it was making this holding a bit heavy for the portfolio. We closed out several FLS positions as well as HBAN. The bank sector has been a beeyache to figure out so except for ZION and BOH we are going to avoid it a while. We got out of our GWW Grainger calls and we ill timed our entry. We had a nice 17% gain on the calls, but we waited too long and the gains evaporated. We will end up with a 2% gain. I am looking at the next option play on this one but don’t know what it is yet. We took abig hit today on our VIX call on VXX. All of this market euphoria has driven the VIX below 20 and killed this call option. I took a 44% loss on the call and it cost few bucks, OUCH. We closed out some Sara Lee options and like the GWW options we had a good gain and waited too long. We took a little gain at the end of the day. If anybody cares we did catch our TEVA option before trading this morning.

So nobody wanted to venture a guess at who the guy in the photo was last night? Here is a hint. If he doesn’t have a NetJets account he will soon! Ok give me your guesses and send them to me at

Salve Lucrum


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