Sensitive market & people
I expected a bounce today as per my last note.
The market as a whole did not quite bounce (although RICK went up almost 9%). Yesterday I have told you that I bought quite a bit more of RICK for my trading account (for a quick trade). Well, it is going great. I might get out in a day or two for a quick profit. You probably remember that the last time RICK went down I bought more too (this is how RICK got to be my largest holding). Back then, the reason was that people thought RICK was involved with the Mafia! Oh, come on. Stock went down and I grabbed at the cheap price. We probably won't see that price again. The lesson is this: if you are in the buying mode, you want the price to go down. Unless the fundamentals have changed, stick to your guns. Don't be nervous at every turns in the market. That's how the market gets rid of weak investors.
Back to the bounce story: I may have been a few days too early but a bounce is near. What killed the party was Home Depot (HD). This giant went down over 5% and it pulled all indexes down with it. We also found out that Mr. Warren Buffett sold many million shares of HD during the first quarter! The smart guy is coveniently out of HD already (I told you he's good). So, let me tell you what he bought during the first quarter. General Electric (GE), (UPS) and Conoco Phillips (COP). So what can we tell from his activity? Mr. Buffett is betting that our economy will be strong (thus GE & UPS) and he thinks oil is great investment (thus COP). It feels good to have Mr. Buffett agree with you.
Regarding oil investments we prefer OIH and MVK to COP. You all know I took good profit from OIH & MVK. As soon as I sell some of our holdings (for a profit of course) I will be buying OIH and MVK again. But wait for a pull back. I will let you know when.
You should also know that I added more of AUTO today at $0.90/share. I first told you about this when I was in Ohmaha at $1.19 then I bought more at $1.00 and today at $0.90/sh. I think I am done with buying unless I get a chance to get a big discount for some reason (you know I like discounts). Also in my trading account I still have SLAB (my cost was $41.11). If the market should bounce (it will) this will jump I think.
Finally, I am thinking of shorting more of Gold stocks (shorting gold was very profitable for me) in the near term. In the long run, I like gold & gold mining stocks. Gold has a good chance to see $1,000/oz in the future. But it has to rest first before the jump.
Tomorrow look for HP (HPQ) to jump in price. It had a fantastic earnings....
The market as a whole did not quite bounce (although RICK went up almost 9%). Yesterday I have told you that I bought quite a bit more of RICK for my trading account (for a quick trade). Well, it is going great. I might get out in a day or two for a quick profit. You probably remember that the last time RICK went down I bought more too (this is how RICK got to be my largest holding). Back then, the reason was that people thought RICK was involved with the Mafia! Oh, come on. Stock went down and I grabbed at the cheap price. We probably won't see that price again. The lesson is this: if you are in the buying mode, you want the price to go down. Unless the fundamentals have changed, stick to your guns. Don't be nervous at every turns in the market. That's how the market gets rid of weak investors.
Back to the bounce story: I may have been a few days too early but a bounce is near. What killed the party was Home Depot (HD). This giant went down over 5% and it pulled all indexes down with it. We also found out that Mr. Warren Buffett sold many million shares of HD during the first quarter! The smart guy is coveniently out of HD already (I told you he's good). So, let me tell you what he bought during the first quarter. General Electric (GE), (UPS) and Conoco Phillips (COP). So what can we tell from his activity? Mr. Buffett is betting that our economy will be strong (thus GE & UPS) and he thinks oil is great investment (thus COP). It feels good to have Mr. Buffett agree with you.
Regarding oil investments we prefer OIH and MVK to COP. You all know I took good profit from OIH & MVK. As soon as I sell some of our holdings (for a profit of course) I will be buying OIH and MVK again. But wait for a pull back. I will let you know when.
You should also know that I added more of AUTO today at $0.90/share. I first told you about this when I was in Ohmaha at $1.19 then I bought more at $1.00 and today at $0.90/sh. I think I am done with buying unless I get a chance to get a big discount for some reason (you know I like discounts). Also in my trading account I still have SLAB (my cost was $41.11). If the market should bounce (it will) this will jump I think.
Finally, I am thinking of shorting more of Gold stocks (shorting gold was very profitable for me) in the near term. In the long run, I like gold & gold mining stocks. Gold has a good chance to see $1,000/oz in the future. But it has to rest first before the jump.
Tomorrow look for HP (HPQ) to jump in price. It had a fantastic earnings....
posted by Jaewoo | 11:59 PM
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