This blog was designed as a place for me to store links that I find helpful. These posts are not investment advice. If you’re looking for advice call your GO BROKER. My belief is the person who cares most about my investments is ME. My hope is the readers of this blog find the sidebar links as useful sources of information while attempting to learn how to manage their own money. As for advice, my Dad gave me the best I’ve ever heard, “Never trust anyone else with your money or your woman.”
The RedDirtTrader as decided to run another GARP SCAN. I was thinking that at least 50 companies would show up on this scan but I was WRONG. Only 16 companies showed up! I'm not going to show you all those 16 stocks, instead I'm going to give you the names that showed up on my NEW garpscan. The number is only FOUR! Yes, that's right, only 4 stocks showed up on this traders RADAR.
Damn, how boring could this be. A medical company, hot wings, filtered water and a real estate related company! Now here's a WARNING. These are all SMALL companies with expected great sales. The problem lies in do they have the cash or financing to withstand a major downturn. U.S.A consumers have not only slowed spending, They've stopped spending on certain necessities. Health care for one, I've read many articles in the New York Times about people not going to their Doc's because they just don't have the money to cover the co-pay or the bill they receive from the HMO. The 4 companies listed above are suspect to say the least. Who the hell in their right mind would consider buying a real estate related company. Also with little expendable income, will anyone buy filtered water and chicken wings.
Now ol' RedDirt says if Petro keeps dropping, I could afford an apartment, get my yearly checkup and have enough left over for some chicken and water. Now that's what I call the American Dream!!! How's that for TRICKLE DOWN ECONOMICS.
Thanks for stopping by and good luck with all your trades!
America, while not the economic power it once was, is still the richest nation in the world. Yet average Americans have virtually none of the wealth. Thomas Jefferson was prophetic when he stated, “If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered .”
Damn, wish this ol' trader was as articulate as Thomas Jefferson was. Luckily for me I found some time to pick up one of my favorite read's today. The House of Morgan found it's way back to my eye. Yet, I couldn't start from where I last left off, instead I had to skip my way forward to the chapter titled"Crash". Seems as though history does repeat itself, no matter how hard we try! From what I've read, seems as though the ones that were the least leveraged were those that survived the rough times. If I must buy, let me buy with my own cash, not dollars borrowed! That is all the wisdom ol' reddirt has to share for now. Good luck with all your trades!
Last Friday I followed up my Thursday buys by adding 100 shares of SPY @ $86.40 and another 100 shares of BWEN to average down to $5.72.... Monday I sold all of my UYG holding for a 14.5% gain and sold half my SPY holding at $100.44. Still holding DDM(-0.45%), GE(+4.27%), BWEN(+23.41%) and of course my reduced SPY(+17.29%) holding.
I'm still following Bill Dirlam's DECISIONMOOSE.com but I saw this recent oversold condition too good a deal to pass up.
Thanks for stopping by and good luck with all your trades.
Limit orders only, GE@20.14, BWEN @ 6.30, UYG @ 9.99 and last but not least DDM@39.97. These are my orders for Yom Kippur 2008. I'm not Jewish, just trade like one. Still have plenty of dry powder for the next moon cycle which could mean even lower buys. Good luck with all your trades.
This chart will show you the point of the market in which we reside. Consumer staples, Health care, believe it or not Financials, and Consumer discretionary lead the way over the past 65 days. This looks to be early cycle. So, what to do from this point. Looks as though, if you wanted to buy one stock to cover each of these sector's it would be General Electric!!! You would be purchasing all the above sector's with the added touch of of being an Industrial play, also this would qualify as a Technology Play and would no doubt be a Utilities Trade. This would no doubt leave you out of the other 2 Sector's. Energy and Materials. This part of the coming rally could be covered in one purchase. Although natural gas is not thought of being a material, it is the Energy that transforms materials into usable products, therefore, this is what a Bear Market Rally trade looks like to Ol' RedDirt. I'll be looking to GE and CHK for a 10% bang. Now for some fun. With the early cyclical sectors looking to take the lead we really need to look at a financial. So let me see what I can find. Looks like UYG may be the only play for this scared trader. KFT would do no harm as a consumer staple. My individual health care for early cyclical would be FRX. My Consumer Discretionary pick would be WSM. So, there you have it. This tradable bounce will begin soon so pick your favorite stocks and enjoy some gains during this bounce. Just remember, it probably won't last beyond the election.
Please don't take any of this information as trade recommendations. This blog is only intended to collect my personal thoughts on the market.
Subscribe in a reader
