Tuesday, June 26, 2007


Despite the fact the market was barely down, I got killed on most of my positions. Apart from SBUX MMS PRAI IBKR SNDK and a few others, my longs were beaten up by a baseball bat.
NYX and LVS have become such garbage I am ashamed that I own them. And the less said about GLD and SLV the better. Gold and Silver were murdered today. First they were hung from a tree, than tortured with a blowtorch and finally decapitated. Someone is seriously try to shake out Gold and Silver longs.

Todays market saw capital fleeing speculative securities and move into larger caps and more secure companies like PFE PG WMT GIS. Google is also looking very solid as it sits near 52 week highs.

Was Bear Stearns fooled by '6 inch hooker heels' ? PIMCOs Bill Gross thinks so.

Consumer confidence and housing continue to deteriorate. As the days of easy credit are left behind, the American consumer will start to feel the pinch. No American Express, Mastercard, Discover or Visa as they are all maxed out. From now on it will be PayDay Loans, Advance America and Cash Call. EZPW CSH FCFS AEA will be some likely beneficiaries from this trend.

I am starting to sense a change in the overall market trend. Unlike the sudden plunge on February 27, this change has been set in motion over the past few weeks. Higher volume on down days combined with financials falling behind. You can sniff the big money running for the exits. The capital markets are serious business and the major players appear serious in their desire to leave. The rush to get that Blackstone IPO on the market was a telling sign. BX incidently fell below its IPO price today. What a surprise !

1 comment:

Anonymous said...

chill out on GLD and SLV. This is temporary. Gold is due for a run to 700 an ounce.

I bought a ton of RBY today...seeing it down 9% today on no news. The junior miners have eaten it recently...if you want, switch some of your GLD to a miner and enjoy the technical bounce that is surely coming.