We’ve had a hell of a run in the S&P 500. I would be putting hedges into your portfolio for a decline. One way to do so is with an ETF.
As always do your own research prior to making any investment/trading decisions.
SDS
A couple interludes to further my point…
ELX rejected the $11 per share offer. Stock is taking a big hit today.
http://www.reuters.com/finance/stocks/keyDevelopments?symbol=ELX.N×tamp=20090709135300&rpc=66
Do your own research prior to making any investment/trading decisions. Always assume I am biased through direct and/or indirect ownership in any and all names mentioned. These are not recommendations but instead points of interest you may wish to do further research on.
Into this weakness I like the following names.
MPEL
Macao gambling play. Support at ~$4… sell if it breaks. I like the prospects of this company especially for Macao exposure. As the Chinese economy goes so too will MPEL, in my opinion.
TRID
At MR10Q had ~$202m in cash with ~$55m in total liabilities. Trading at $107m market cap at the moment ($1.70). Also have other assets ~$20m. Looking for $140-$150m market cap to take profit and stop exit on break of $1.50.
ELX
Received a cash offer of $11 – trading sub-9.50 currently… something’s off about this. Looks like a decent risk/reward in my opinion as there’s an offer on the table that represents a premium of >13% from the current price ($9.35).
TBT
I’m still a huge believer in high inflation coming through the pipeline. This is an ETF that shorts long Treasuries.
And finally, a throwback interlude.
This interlude is for the start of the next swing upward that (hopefully) starts Monday.
I neglected to mention this as part of my previous post. One of the core reasons I’m bullish in the face of the 2-3 month rally/consolidation period is because there remains a minority of market participants who trust in the rally/bullish recovery. This is one of the best indicators out there and it’s only available by immersing yourself in current events in the markets and infusing intuition. Barring an unforeseen event such as North Korea doing some real damage, I expect we hold the 875 – 880 level on the S&P.
As always you have to remain willing to adapt if conditions change.
In an interview the other day I was reminded of this speech. Well worth the time.
