I see we got some more “yadda, yadda, yadda” from the whiners.
*yawn*
Give the Pigg readers something they can use: post your trades and your advice on the markets. Post them when you make them. Here are my trades placed today:
1) I capitulated this morning on the S&P500, dumping my 2X short (“SDS”) on the S&P500 and immediately going 2X long (“SSO”) that same index. That was a strong hunch this false rally still had staying power up to at least 1,000. I bet 18% on the long S&P500 position because I think this rally goes above 1,000 in the next 60 days. Things are moving my way so far as S&P500 was up 3% by end-of-day and futures now are trading up another 3%. Hopefully that puts me up a cumulative 12% by end-of-day on Monday. That will have washed away the previous losses on “SDS” and leave me some spending money to boot.
2) I dumped all my oil ETF’s, apparently too early as oil continued climbing after I sold. If oil hits $60 it really is gonna break my heart to have sold early.
3) I carefully again took a nibble against the bubble in US treasuries, buying just a 2% of portfolio in the ProShares short treasury ETF’s: “PST” and “TBT.” I view this as a position I’m going to dollar-cost-average myself up into about 20% of portfolio over six months, and hopefully be well-positioned for the bubble bursting. I’m wary the Fed still has plenty of money to spend bringing down the long end of the curve (more air into the bubble)
4) I shorted gold at $875, with 2X leverage (“GLL”). That is just a hunch, which is why I only bet 2.5% of portfolio. That’s the bet I’m most unsure of.
5) I held my 4% of portfolio position in Wells Fargo. I like that stock’s long-term potential.
The rest is all in cash. I’m keeping that in back pocket looking for better spending opportunities in these areas where I see the big money can be made:
1) Shorting the S&P500 off the false rally peak at 1,000 (or higher)
2) Buying oil sector when oil hopefully retests $30/bbl
3) Buying gold at $750/ounce and below
4) Shorting the US treasuries ahead of the bubble.
I’ve been spending a lot of time lately reading Karl Denninger’s blogs. This guy seems quite sharp.
My wife and I just spent two hours meeting with Silicon Valley’s best Realtor. We are ready to shop for a SFH. I’m not saying we are certain to buy in the next few months, but we are starting to look at homes. Some areas of Silicon Valley have SFH prices off by 50% from peak, and cash-flow-positive on rent. I anticipate increased government intervention could drop mortgage rates to 4.5% (where we like to catch them) and 2009 might even give us a mini-rally (that won’t last) in housing prices
