Best of the Web Tuesday July 27, 2010

Day Two went a bit better, no real drama with the kitchen! It seems impossible that the room will ever be back together, but I guess everyone feels that way.

Looking to Open Positions
I have done a bit of homework using my proprietary trading system (my mind) and I think I will be opening up some positions in the following as I have not made any trades this year so far:
-Hormel (HRL)
-McDonald's (MCD)
-Budweiser/Inbev (BUD)

All three are showing clear ability to still get people's money for their products and the charts are favorable as well for the medium/long term trade (3 month-9 months). I will update with stops, buy prices and the rest of it if I can get it done.

Best of the Web Tuesday July 27, 2010
Today's must read comes from Housing Wire's Paul Jackson who pens:
The New Math Surrounding HAMP Doesn't Add Up
You will have to read this to believe it but here is the set up:

At HW, we chose not to run with the HAMP redefault numbers except to note that Treasury officials had added them into the latest report card. And this choice was made with purpose: we knew these numbers were fake. Nobody gets a 1.7% redefault rate 6 months after modification –- not even Uncle Sam — and any media outlet reporting that number with a straight face quite simply doesn't understand the industry it's covering.

The only way to come up with a 1.7% redefault rate is to change how redefaults are calculated. And that, dear readers, is precisely what our government did.

This should be a scandal and called out, but I don't think it will even make the Sunday paper. Hat's off to Housing Wire for the catch.

Have a good night.

Monday Short and Sweet

Home very late so not much time to post.

Economic Disconnect 6 Months of Trading
A while back I posted a trading idea about "stomach stocks" and I highlighted Hormel Foods (HRL) and Campbell's Soup (CPB). The original post can be seen here from September 8, 2009. I opened positions in both HRL and CPB on September 9, 2009.

A little further back in June I posted some trade plans concerning GLD, SLV, PAAS, and SPY. So how have the past 6 months been for me?

HRL = +5%
CPB = +7%
GLD = +19%
SLV = +18%
PAAS = +8%
SPY = -2% (I was stopped out, but this one would have ran had I kept it!)

Please note that I have what I refer to as "core" holdings of both gold and silver via various channels that I wish not to share details about.

My only loser was the SPY buy as I set my stop very tight because I did not even want to play the general market on principal.

Not a bad 6 months, with only 1 loser. I hate losing money trades. I would rather play a Beatles tune on Friday night than lose money!

I have a good chunk of my portfolio in cash right now. I am not making any changes to the positions noted above save setting stops higher than they were previously to lock in some very nice gains should things change. I have been outpaced by the general S&P 500, but I refuse to trade in the fantasy land that is the general stock market over the last months.

How have you all been doing? No need for fine details, but what has been working? What has not?

This is a short holiday week so I do not imagine too much heavy duty posting. I will probably check in with more fun related posts to lighten things up.

For a chuckle I would ask you to check out Stagflationary Mark's "Illusion of Prosperity" picture-gate scandal where a photo on his site of his own dog was lifted by another blogger without asking. Not a huge deal in the scheme of things, but annoying for sure:
Honey's Popularity Rises!
Awesome.

Have a good night.