Surfing Wall Street to Retire: October 2011

Tuesday, October 25, 2011

Short FXE and buy IAU or GLD

This would be the EU political trade assuming more risk to come. Anybody know a better trade for a down europe trade.

Monday, October 24, 2011

Defensive and High Dividend Stocks Were Down Today?

Does that mean I should consider selling the belows

BP	41.84	-0.51	-1.20%
ADES	17.40	-0.13	-0.74%
PM	69.48	-0.52	-0.74%
ESLR	0.18	0.00	0.00%
LOW	21.78	-0.35	-1.58%
PEP	62.10	-0.18	-0.29%
KO	67.87	-0.32	-0.47%

ABT	53.45	-0.41	-0.76%

Why does the market keep going up?

EU bomb is still ticking without any concrete action in place. Nobody really knows all the details like how much is needed and for how long? $1-$2.4T for the next 3-7 years?

Bought AAPL 350 call for April 2011 last friday

Strangly I am considering sell it today. Any thought?

Tuesday, October 18, 2011

Sold 1 call - GOOG Mar 2012 500.000 call - Last Friday

Market seemed toppy not to take some profits.

Monday, October 10, 2011

Sold 100 Share of ABT - Expecting More EU Issues

I think the Love Fest that a super EU deal will evolve in 3 weeks really asks the question why they cant release the deal now? Greek bonds take a 50% hair cut? Details like this will have detailed ramifications for their banks which suggest a solution will not necessarily produce a near term positive for the Stock Markets. Long term I am bullish, but think stocks will come back to cheaper levels.

Wednesday, October 5, 2011

Sold 200 Shares of AXP - Feeling Mildly Neurotic

This market is not based on fundamentals any longer so I am waiting for a EU catastrophe to start the fire sale and hopefully be able to get in then. Time will tell?

Monday, October 3, 2011

Bought a APPL April Call Option on Friday - Regrets?

Not sure if regrets are in order. I think this market is sick and I do not expect organized or unified reaction coming from Europe till a crash occurs. So why the hell did I buy AAPL Calls when I fully expect this market to march significantly lower? Look at the valuation of AAPL? Crazy cheap still.

Sunday, October 2, 2011

Deleveraging IV Coming? - PIIGS Contagion - The Markets Real Correlation

Dutch Tulipemania - 1800sish
...
Great Depression - 1928-1937
...
Middle East Oil Embargo - 1972
...
Deleveraging I - Savings and Loan Crisis - 1991
Deleveraging II - Dot Bomb - 1999
Deleveraging III - Housing Crisis - 2008
Deleveraging IV - Pork? Contagion? - 2012? -Most don't know the questions right now? Which speaks volumes about where the market is headed right now.

When market stability returns fundamentals will take hold again....

Not a good time to rent Wall Street II...

Long Term Market Equity - MacroThemes

1. How will the 46'-64' born baby boomers effect cash flows into and out of the market. Given the Dot Bomb and Housing Bubbles which help to define horrible stock market decade, more than likely there will be a movement towards perceived quality like bonds and out of riskier assets like stocks. Therefore, lower P/Es should be expected in the coming years for Stock Market investors. The Baby Boomers will be retiring at age 67 in 2013-2031. Hospital stocks and pharma stock should do well during the retirement.
2. The Information Age will become more and more pronounced by those defining what the information age is becoming. Stock exemplifying these would be IBM, MSFT, AAPL, GOOG, FB, and CRM. Salesforce.com and cloud computing seem to be where things will be headed in the next couple of years. Then likely there will be another correction in directions.
3. Emerging Markets - Additionally, all this free information available over the internet will allow emerging markets to compete without so much of an educational deficits. Look to EEM and emerging market stocks to continue to accelerate progress and prosperity. The China Age - China becomes worlds largest economy in 2032 -City Weekly January 6 2011. This theme has weakened significantly with the Chinese focus towards services and technology.
4. The Energy Age? Not defined yet, but the need will be originating from a peak in fossil fuel production coupled by increased demand originating from the largest part of the Globe. The 3rd World continues to industrialize at an accelerated pace. Small start-ups in Algae, Wind, Gas, and Fracking will be in demand as oil prices keep rising.
5. Resource Scarcity - Human activity will continue to pressure resources especially food, oil, and gold.
6. US Debtor Nation Status - Interest on the national debt should be pushing $1Trillion per year in 2020. City Weekly January 6 2011
7. Obesity kills more Americans than smoking City Weekly January 6 2011. Healthy and honest food options will become more and more in demand as the younger generations expand purchasing power.
8. Nature Deficit Disorder - Kids start getting disconnected from the natural environment at an accelerated rate. City Weekly January 6 2011
9. Emerging Markets - Rise in Food Costs driven by desire for higher protein diets. - DE, POT, ASCO re: Cramer 4-18-11
10. Emerging Markets - Power Management - Electicity will continue to follow the movement - ETN, HON, EMR
11. US - Healthy Food - Industrial Farming, Factory Farms, Hormons, Pesticides, Fertilizers, Chilpotle, Hanes Celestial Seasons, Whole Foods re: Cramer 4-18-11
12. Gold - Inflation Hedge and Especially GLD, SLV, GG, NG, BRK re: Cramer 4-18-11
13. Homeland Security - Even though defense is being cut around the world by developing nations, terrorism is a force that will stick around just like Middle East Terrorism Groups - NICE, Fortnet, American Science and Engineering re: Cramer 4-18-11 Trump should also expand insecurity through isolationism and uncertainty of campaign promises.
14. Currency Going Electronic - Consider credit card companies as a value growth proposition. DFS, MA, V, and AXP will all benefit from this trend.
15. Paperless Office - Though this was a theme in the 90s I believe the paperless office is happening now at an accelerated rate. Companies that can benefit might be ADBE which holds the keys to PDF productions. Other software and cloud plays will also benefit. There is a lack of a pure play paperless office company.

Demographic Influences of Investing

Baby Boomers Born 1946-1964 or Ages 64-46 (2010)
*Boomers might be focus on stable income investment like bonds and high yield large cap stocks.
*Catch ups will likely focus on international stocks

Baby Busters Born 1965-1977 or Ages 45-33 (2010)
*Focused even more so on 401k's and stock investment
*Not a large enough group to have great market inflow influence
*Possible Baby Boomer Inheritors

Echo Boomers Born 1978-1994 or Ages 32-16 (2010)
*AKA Millenials
*Too young to be buying homes, mostly a renter generations
*Probably more concerned with college debt and the like

Signs that a stock is a sell:

1. Accounting Irregularies are discovered - Extreme Concern.

2. The competition is starting to take market share away.

3. Caution! - when all the analysts say your stock is an "Aggressive Buy" be very careful and ready to sell.

4. PEG Ratio > 1.0

5. Short Ratio > .40 Indicator of Bearish Sentiment, but beware of a shorts squeeze.

6. P/B Price to Book = Stock Price/Total Assets-Intangible Assets and Liabilities > 1.0 = Overvalued Indicator

8. Technicals: Head and Should profile is bearish just as inverted Head and Shoulder Profile is bullish.

9. Remember Buy Low and Sell High!!!!!! You never have a profit until it is logged.

Let me know if you have others good rules to sell?

Signs That A stock May Be A BUY:

1. You believe the stock has long term earnings growth.

2. You believe the stock has a moat (Warren Buffett term). This is a form of monopoly or sustainable market control. Examples of a modern monopoly or duopoly (KO, PEP, HD, LOWS, CAT, DE, etc).

Insider Buying Tipoffs:

3.The stock is on the 52 week high list and there is significant and real insider buying.

4. The stock is heavily shorted and has significant and real insider buying.

5. The PEG Ratio is between 0-1. This is a tipoff the stock may be undervalued when considering price in relation to growth.

Let me know your favorite indicators to buy??

Tuesday, October 25, 2011

Short FXE and buy IAU or GLD

Monday, October 24, 2011

Defensive and High Dividend Stocks Were Down Today?

Why does the market keep going up?

Bought AAPL 350 call for April 2011 last friday

Tuesday, October 18, 2011

Sold 1 call - GOOG Mar 2012 500.000 call - Last Friday

Monday, October 10, 2011

Sold 100 Share of ABT - Expecting More EU Issues

Wednesday, October 5, 2011

Sold 200 Shares of AXP - Feeling Mildly Neurotic

Monday, October 3, 2011

Bought a APPL April Call Option on Friday - Regrets?

Sunday, October 2, 2011

Deleveraging IV Coming? - PIIGS Contagion - The Markets Real Correlation

About Me

Blog Archive

Surfing Wall Street to Retire

Short Term Sector Trading Cycles

Author's Other Websites

Followers

Long Term Market Equity - MacroThemes

Demographic Influences of Investing

Favorite Financial Sites:

Signs that a stock is a sell:

Signs That A stock May Be A BUY:

Funds I Follow in my Brokerage and Retirement Accounts

Stock Favorites

Webmaster Linklist