Sunday, September 23, 2012

What should we expect going forward in the market?

Who knows? I've been asking myself this question - is this the beginning of a beautiful thing, or a head fake? This market is very tricky. The world economic situation is uncertain, to say the least, but the S&P is high. Jobs are hard to come by and housing is still in the dump, yet the market has blown it off. Like I said, this new market of the last 10 years has little to do with fundamentals.

We've made good money on our coal and ore positions. To be fair, we have picked some dogs too. Our solar stocks are really in the dump. The slowdown in Europe and to a lesser extent, China, has really impacted solar, as Europe drove a lot of the demand. I've temporarily unloaded my SOL and put the money in ANR earlier this month. I'll buy SOL back sometime in Oct after my 30 day wash sale period, as I still believe it's a good buy down here.

As far as ARNA, what a job hedge funds and other speculators are doing on the stock. It's clear now they were wrong going with VVUS. VVUS got approved, but it's been a disaster since then. If ARNA had said they didn't believe they would get approval in Europe, the stock would have been cut in half, yet VVUS loses a couple of points. ARNA is a great long term buy and I'm still holding plenty. I would stay away from the options, as there is way too much manipulation happening there.

So, I'm holding on to my positions and riding out the volatility. Looking for some new names. Here's something to think about. The bears and shorts are beating the war drums. China has promised $150 bils and we got QE3. Eventually that money will start to find its way through the system and stocks highly correlated to the economy will attract more than their fair share of attention.

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Thursday, September 6, 2012

A short note

Been preoccupied with other things for a while, but not much has changed anyway. Our coal and ore stocks have taken a beating lately, but we have time. the problems in Europe and the slow down in China have things on hold, but oddly enough, the S&P is at a 52 week high. This is a peculiar market. Guess I shouldn't be surprised, as regulators sold us out years ago, so fundamentals don't mean what they used to. Anyway, we find opportunities where and when we can. Oh yeah, I'm still holding ARNA!

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The Vix

About This Blog

Where we rant and rave about the market and of course give our opinions on stocks we love or hate. We're not advisors and urge you to conduct your own due diligence.

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