Monday, February 14, 2011

Just a Bunch of Stuff

Happy Valentine's Day! My cunning plan for surprise flowers and chocolates delivered to the wife's work was foiled due to heavy order traffic! It will be delivered tomorrow but it's not the same thing. Oh well.

ETF's - Save the Drama for Your Mama
Who knew ETF's can be so exciting? A couple of stories from today.

Kid Dynamite notes that the Egyptian fund, EGPT, is going to have some problems squaring the fund when Egypt's market re-open (whenever that is):
EGPT – The Problem With Cash Creations: An ETF Lesson Part IV
very interesting and thus you should be aware how any ETF you are buying is structured so you know the risks.

Last week news was out that the leveraged 3X bearish inverse types of funds were closing up because nothing goes down anymore anyway. That makes sense as the product has no value in this market of forever ascending channels. What is strange is the double long agricultural fund as that one has been on fire (via Zero Hedge):
Deutsche Bank Suspends New Issuance Of Double Long Agricultural ETF DAG
Anyone want to take a stab on why this is going on? I have a conspiracy idea that food commodity speculation is about to become the next "end the shorts against the banks" target! Call me crazy, try it!

Bubbles Are Everywhere and No Where
Maybe Alan Greenspan was right, a bubble can only be identified after it has burst. Before then people will bend themselves into intellectual knots justifying price and valuation. It never changes.

As a metal lover (long physical gold and silver) I am always amazed at the fury of screams that the metals are a bubble. The stock market is always correctly priced, but metals are off the reservation. Ok.

The Golden truth pens a nice missive on metal hysteria and compares it to a new era favorite, NFLX. Below is the graph comparing gold and NFLX since the summer of 2009. I suggest you click on over for the commentary:

NFLX: up 450%
Gold: up 40%
I know, soon everyone in China and India will be streaming 50 videos a day through Netflix and they will make a quadrillion dollars. When? Not now, and not in 5 years. NFLX and social media are the next bubble, IMO. I know it's different this time and all that. I think I will call it the Easy Service bubble or the Time Waster App bubble.

More metals? Click on over to Jesse's site for some great commentary on my beloved Silver:
James Turk On Silver, and A Possible Twist of My Own
I keep meaning to stake out some trades in silver, but then I already am carrying heavy in that area.

Market Operations
Last night I left my list or review stocks but I never updated it! I was running late and I was trying to narrow down some buys. I came across plenty of good chart set ups and I was really working them. I ended up going with 4 buys, and I do not like to have that many positions open at once. The mix is conducive to making easy decisions so I am ok with it. My buys from last night (click for larger view):

Look what Ben Bernanke has done! EconomicDisconnect is buying solar stocks for crying out loud! It's the end of the world for sure!

I recently switched my entire trading account over to TD Ameritrade and I love the service. My orders got filled in the early am (pre-market?) and so I was able to catch most of the run today in the two solar stocks! My old Bank of America/Merrill brokerage would have put me in at the high of the day no doubt.

The solar stocks were not my idea but the great work by chessNwine in the 12631. Chess is maybe the most sound and patient trader I have ever come across and I totally followed his play in this space. I am targeting a nice move up in both stocks, maybe even 10% or more. As always we shall see and no one should take anything written here as advice in any way.

New buy recap:

I found a couple of other quick hit type of trades on my screens and these two are either going to rip or fall flat so trading them will be easy:

I am leaning towards holding my AMRC stock into earnings and playing lotto! It's only money (and a small position) so I think I will let it gap down 30%, I mean see what happens on Thursday.

I am Sure it is a China Only Thing
Make fun of Zero Hedge all you want but the site calls things better than most.

Two posts show how funny the world has become:
China Lowers Weighting Of Surging Food Prices In CPI
Not like the US CPI is from fantasy land, we call it like it is, hee hee. The Zero offered this:
As a result of this pre-emptive manipulative action, expect to see a CPI lower than the 5.4% consensus when the number prints later tonight.

Well, it is later tonight:
China CPI Comes At 4.9%, Below Consensus Of 5.4%, In Line With Zero Hedge "Pervasive Data Manipulation" Expectations
Wow. Inflation erased by the magic of decision. Love it.

Have a good night.


GawainsGhost said...

Yeah, social media is a bubble. Look at BlogTalkRadio--they're now limiting shows to 30 minutes, anymore and you have to pay for it.

There was an article in The Writer magazine, which I unfortunately subscribe to, last year about the internet destroying print journalism. The author's solution was for the government to subsidize newspapers and magazines.

Oh, please. Anyone notice how well government subsidies of housing worked out?

Rapid inflation followed soon by rapid deflation. Yeah.

Bubbles, bubbles everywhere
And not a pop to blink
Bubbles, bubbles everywhere
As all assets did shrink

I didn't buy chocolates or flowers for anyone this year. Just went about my day doing what I do, which is work. But I did take the time to write a poem and email it to a beloved one. Here it is.

Valentine cards are shaped like hearts
This one's shaped like a soul

Hearts are organs for pumping blood
Something else makes us whole

Love exists not where hearts shall meet
But where souls intertwine

And every day is a new day
Happy day, Valentine

getyourselfconnected said...

WOWZA Gawains! Nice work! I like that one.

Surprised you did not rib me about the crap stocks I am buying, lolz.