Tuesday, October 02, 2007

Market Commentary

The major indices did not go anywhere today though stocks as a whole did pretty damn good. The sector that impressed me are the casino stocks with huge gains in two of my holdings LVS and MPEL. Home builders powered upwards since they are heavily shorted and anything can send them rocketing. Ridiculous gains in HOV TOL KBH DHI BZH MTH RYL . I am thinking of adding SRS as a hedge if this craziness continues. Homebuilders will be a great short very soon.

Broker stocks have been doing well as of late. I sold out my GS position between $204 and $212 with a cost basis of $174. GS printed $228 today. It was a short term trade and I was ok with it. OXPS is the broker I love and I am long and will continue to hold till this prints $35 or gets bought out.

In the semis/chips, MU had a solid day though gave back some in after hours after a not so cheery earnings report. OVTI continues powering higher and I continue to stay long. This has been one of my best plays this year. I bought between $13 all the way till $18.

AKAM and LLNW put on a little show today. I have been pounding the table on AKAM for quite some time now and it looks like some big funds are taking notice. What you have here is a growth play that offers tremendous value. FFIV is another one of my networkers that put on a show. I like RVBD too. Its been strong the last few sessions. I owned this between $28 and $45 and am considering taking a position again here.

BRLC and JADE are in my dog house along with JSDA. I have strong expectations on these names in the long run. I could sell now , take the loss and buy later. The problem is these micro caps run so fast that by the time you notice them running up, they are already up 100% or more. All 3 are spec names and constitute less than 3% of my portfolio. So I am not too worried.

BIDU continues its crazy ascent. This stock is easily my stock of the year. I sold half my stake over 100 points back and this monster continues its climb. I am looking at taking more of the table because once again BIDU is creeping towards being my biggest position. I am trying to keep BIDU to around 5% of the portfolio but am failing miserably though I am not complaining.

Gold and Silver had a poor day. I sold a major portion yesterday after I felt a pullback was due. I didn't expect to time it so perfectly. I think I will hold of buying till next week.

The market looks like it wants to continue going higher. lot of skeptics out there. Nobody believes in this rally. The Dow will likely print 15,000 before year end. I think oil peaks here and heads down below $70 by end of the year. I would be long DUG.

1 comment:

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