March 28, 2009
The market has made the "biggest 10 day advance in 70 years." What does that me for us? RING THE REGISTER! SELL! This first wave of a countertrend rally has been tremendous but markets don't go straight up or straight down. The perfect scenario would be to continue up into Tuesday while the fundies complete their windowdressing and then hard down to the 740 - 770 level on the S & P 500. This might only take one or two days. At that point we're back in 100% long. The market could try and not give us a chance to get back in but the present overbought condition warrants a trade out for another reload below SP 770.
MARCH 19, 2009
The AIG mess is simple. Are the execs who caused the mess still there? If so, fire them! Don't give them bonuses. Prosecute them! This is not talent that need to be retained. This is not talent at all, a monkey could not have managed the business any worse. If the bonuses go to employees who are there to straighten out the mess, then they deserve it. Problem is nobody is saying if these are the same execs.
REAL ESTATE:
Maybe not the most desired scenario, but think of this...after the massive printing of all this money fights the deflationary spiral, it will lead to an inflationary disaster. Your home and real estate holdings will increase dramatically (in dollars) because the dollar will be worth so much less. Hmmm....so your $300,000 house will be worth $1,000,000. Perhaps this is how we end the real estate crisis. Problem is it will cost three time as much (at least) for everything else.
REAL ESTATE:
Maybe not the most desired scenario, but think of this...after the massive printing of all this money fights the deflationary spiral, it will lead to an inflationary disaster. Your home and real estate holdings will increase dramatically (in dollars) because the dollar will be worth so much less. Hmmm....so your $300,000 house will be worth $1,000,000. Perhaps this is how we end the real estate crisis. Problem is it will cost three time as much (at least) for everything else.
March 13 2009
Our timing models have rewarded us with a very fast 10% plus gain in less than a week. While pleased with our immediate gains in the market after being in cash since 2008, it is a bit too fast too furious. While not selling, we have gone into short term hedge mode this morning by selling call options and buying puts with the proceeds. This in turn will lock in our profits for now. Remember, if your broker is not producing results such as these, fire him and switch to JH Blake Capital Management. We only make money when you make money!
Our timing models have rewarded us with a very fast 10% plus gain in less than a week. While pleased with our immediate gains in the market after being in cash since 2008, it is a bit too fast too furious. While not selling, we have gone into short term hedge mode this morning by selling call options and buying puts with the proceeds. This in turn will lock in our profits for now. Remember, if your broker is not producing results such as these, fire him and switch to JH Blake Capital Management. We only make money when you make money!
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