Thursday, January 9, 2014

1/9/14 Sudden Death

Regardless of any rallies in the short term, from a common sense perspective I can't really separate the 2013 rally from the $1 trillion of liquidity provided by the Fed last year. Now that the Fed has signaled it will begin to withdraw liquidity, the market(s) should begin to revert to an 'ex-Fed' state of being. Should market reaction to 'jobs' on Friday be positive, I plan to withdraw the portfolio from further risk. Should market reaction be negative, I also plan to retreat (I'll take the hit and pull in my horns). Apart from miners and emerging markets (both sectors declined today), I don't see favorable pricing in assets. Sentiment is high. Prices are high. Cash is king.

119 comments:

  1. ZGNX - Vermont governor says his state and neighboring states have rampant problems with pill-mill opiates due in large degree to legitimate pain medications having become unavailable through medical professionals.

    ReplyDelete
  2. I think there's an 'art' to taking losses. It's an emotional event, no question. We can 'man up' and say it's part of the game. Yeah, I get that. But it's still a hard-hitting mofo event.

    So what's with the 'art' of taking a hit? After a sub-par 2013 followed by a negative start to 2014, I experienced my 'Gestalt' moment today. Here's the theory:

    (a) I 'experience' a loss (down about -1.4%, but whatever- it could be -14%).
    (b) I continue with my day, fully aware I've taken a hit. Congratulations. No point in letting it change my plans.
    (c) I 'accept' the loss. (What alternative is there? Not accepting it? Come on.)
    (d) So far, so good. The difference lies in not feeling constrained by it. I'm free to 'handle' the loss any way I want. I don't need to handle it the way I did last time, or the time before that, or react in a manner even remotely resembling any past approach.
    (e) For crying out loud, if I can't stand the heat I only need to leave the kitchen.
    (f) So I plan to enjoy my evening, and sleep well. Look, if you're blogging here, then it's obvious you're already living life at a level 99% of the world would gladly trade into.

    Cheers!

    ReplyDelete
    Replies
    1. When I was 18, I laughed at people who defined themselves according to their net worth. How times change!

      Delete
    2. If I walked into a bar in Bombay looking for someone to commiserate with me, they would freaking spit on my Scotch.

      Delete
    3. Damn. I would spit into my own Scotch.

      Delete
    4. Remember when Jim Harbaugh took last year's Super Bowl loss less than graciously? Dude, it happens!

      Delete
    5. I'm trying to give an honest stream-of-consciousness rendering of my thoughts.

      Delete
    6. Two fingers of Glenfiddich. That's the other 'influence' I'm under.

      Delete
  3. Wonder what the real rate of inflation would be if the core figure included ENERGY, food, taxes and healthcare? Motor fuel consumption is down 1% due to increased efficiencies, at the same time as DOMESTIC oil production is ramping up.

    This sounds bullish for the $US to me (but not necessarily for US exports, due to lower energy costs), among other aspects for consideration, and leaves me wondering if the market is responding incorrectly, by superficially interpreting the situation as economic weakness? So yeah, lumpy disinflation throughout various sectors might be caused by this increased energy production?

    Just have a look at refiners and companies that manufacture plastics, rubber, and the other petroleum-based materials and products, these guys should be the beneficiaries of falling energy costs among others, right?

    ReplyDelete
    Replies
    1. "but not necessarily for US exports" That is, "not necessarily a death-nell for US exports"

      Remember, the concept of (almost) free energy is forecast as having deflationary component(s), thus we must identify those and create/develop our plans accordingly.

      Delete
    2. But not sober enough to understand your latest comment.

      Delete
    3. I'm contemplating the "What If" scenario....... "What IF" the US is becoming "more", "completely", or "exporter status" concerning energy? Surely there are ramifications.

      Delete
    4. It would fit the Mexico-US-Canada global economic 'bloc' scenario. North America already has a ----load of natural resources. Recent discoveries, together with some type of 'North American cartel' pricing power, would be one heckuva game changer.

      Delete
    5. "What If" falling energy prices are being incorrectly interpreted as economic weakness?

      I don't know the answer, just pondering the possibility.

      Delete
    6. There are many stocks which will be winners from lower energy prices - fertilizer, chemicals, basically any user of energy.

      Delete
    7. "fertilizer, chemicals, basically any user of energy."
      Especially if they're strategically located somewhere on the supply route, where the energy is accessible from the tracks out back.

      ALDW for instance is right on top of the Permian, in Big Spring. Not sure if the oil will be routed directly to Houston vis pipeline, though. This refinery has been there forever, it's the old FINA refinery under new management. Word is, there's an underground valve there that's shot to hell and leaks like a sieve, not sure if it's ever been repaired, supposedly it would be one of those prohibitively expensive and impossible problems to resolve. The soil under the refinery is saturated with hydrocarbons, probably to an extent that cleanup would require superfund status, which probably explains why the refinery remains in operation.

      Delete
    8. And maybe pipelines?
      "Hathaway Inc. (BRK.A) pay some $1.4B to buy Phillips Specialty Products Inc. (PSPI), a unit of Phillips 66 (PSX). This business "leads the science of drag reduction and specializes in developing polymers to maximize the flow potential of pipelines." The announcement caused the stocks of refiners like Valero (VLO) and Tesoro (TSO) to move up 2% to 3% the day the transaction was announced."

      AEGN does pipeline rehab too, Shaw in Canada, and CLMT is building a refinery in the Bakken area.

      Delete
  4. PAL - Does this chart look bullish, at all?

    ReplyDelete
  5. SWC - Man, I wish I'd held onto this one from $9
    ARII - What does the backlog for rail tanker cars look like?

    ReplyDelete
  6. ANF - The beginning of a comeback???

    ReplyDelete
  7. 'Bulletin China export growth, trade surplus miss forecasts; markets show little reaction'

    http://www.marketwatch.com/story/newsviewer

    That's the kind of reaction we need tomorrow.

    ReplyDelete
    Replies
    1. An advance on "bad" news is my idea of a bullish signal, perhaps Korea (KB and PKX?) will confirm the sentiment.
      "Exports rose 4.3% from a year earlier, according to reported data, after surging 12.7% in November, with the result trailing a consenus estimate for a 4.5% increase from a Wall Street Journal survey of economists. Imports were 8.3% higher than the year-ago month, accelerating from 5.3% growth in November and above economists' 5% projection. The resulting trade surplus was $25.6 billion, narrowing from the previous month's $33.8 billion, with the survey having tipped $32.2 billion"

      Delete
  8. NWLI - Looks like the knockout move is done, so maybe now it's begun a leg up? AIG has done well, too.

    Thanks for another good suggestion BB, I owe ya' one, man!

    ReplyDelete
  9. ZGNX - This SA article seems to have a grasp:
    http://seekingalpha.com/article/1918971-following-smart-money-baker-brothers-investments-in-2013-and-beyond-part-2?source=yahoo

    ReplyDelete
  10. What happened last time this guy pumped?
    "Draghi Says ECB Ready to Act"

    ReplyDelete
  11. "Why Microsoft Hasn't Chosen a New CEO"
    Allow me to guess, is it b/c they plan on repackaging the same horse and buggy operating system until the end of eternity, or will they buy another company with a CEO who knows how to write(and test) decent software?

    ReplyDelete
    Replies
    1. I read because of two people : Ballmer and Gates. In that order. They control the board.

      Delete
  12. BTW, NSPH has been trending up on higher volume lately. I am a holder. Nanosphere.

    ReplyDelete
    Replies
    1. Nice to see. I was thinking of you last week and noticed NSPH was forming a flag, looks like it broke out to the upside and the gap close is coming rapidly.
      A couple of thoughts on my behalf which are probably near worthless.... 1) Could be profit taking in case the gap doesn't close? 2) It seems like the most recent earnings response was quite positive, so maybe it's more than just another technical chart phenomenon?

      Delete
  13. I still can't figure out if the Hang Seng or the Shanghai is the better index for determining China's markets.

    I heard an interview with the AA CEO. He was asked about his views on China. He said he sees it slowing a little but that it's from like 7.5% to 7.2% and the fact is the actual size of the growth will be bigger than last year because the base is bigger. He seemed to be fairly bullish on China.

    ReplyDelete
    Replies
    1. 000001.SS is Shanghai on stupid YHOO Throw the KOSPI in the mix?

      Delete
  14. When you figure that out, and use that knowledge to pick the best EFT let us know.

    ReplyDelete
  15. I know you guys wont believe this, but I got 3 calls today from someone in Illinois and I actually answered thinking it might be Illini!! And BAM!!! Here he is!! Unreal.

    BTW, the # that called me was 630-847-1371.

    ReplyDelete
    Replies
    1. That was most likely a nut behind the wheel, Illinois is full of them. :)

      Delete
  16. CVI - This one is mostly owned by Icahn. The CVRR refinery(70% owned by CVI) is restarting, following the shutdown.

    ReplyDelete
  17. Look at 5 year chart of copper.......

    ReplyDelete
    Replies
    1. Picking a price on the JJC chart, looks like it needs to hang onto $40.30, roughly, and remain at least above 37.

      Delete
  18. CPST - Capstone Receives Multiple Orders Totaling 6.4MW from E-Finity for Marcellus and Utica Shale Plays

    ReplyDelete
    Replies
    1. "According to a new market report published by Transparency Market Research "Microturbine Systems Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2013 - 2019" global microturbine systems market was valued at USD 144.4 million in 2012, growing at a CAGR of 16.7% from 2013 to 2019. Annual installation was 123.2 MW in 2012 and is expected to reach 447.4 MW in 2019, growing at a CAGR of 19.8% from 2013 to 2019."

      http://www.e-finity.com/news.php

      Delete
    2. But wait, what is e-finity's relationship with Capstone?
      http://www.e-finity.com/about.php

      Delete
    3. I guess my concern is, CPST isn't the only kid on the block, GE certainly can build microturbines, and I'm pretty sure UTX can as well, Varian used to make turbo-molecular pumps much on the same level, and plenty of other companies do too, now.

      Delete
    4. http://peterlbrandt.com/wp-content/uploads/2014/01/1.6_CPST_monthly_v2.jpg

      Delete
  19. AA going to take a beating this morning - beat on revenues but missed on profits and had a big writeoff of assets, plus a fine for bribery.

    Not sure what to do yet.

    ReplyDelete
    Replies
    1. Traders might just think it's dead money for now?

      Delete
    2. Seems overdone, Klaus wasn't exceedingly convincing but did a fair job of talking his way through it with Cramer. Yes, I watched at 03:00.....

      Delete
    3. Wouldn't be surprised to see it range trade for a while until either the economy improves or we get a better quarter or 2.

      But I still think there's great upside longer term. One of Canada's best contrarian investors was on TV this week saying he tried to buy Alcoa near year-end around $8.50, but missed it and would get in on a good pullback. He also thinks there's loads of upside over the next few years.

      Delete
  20. BALT - Back to full position @ $5.95, and questioning my sanity.

    ReplyDelete
  21. BSBR down $0.62, but today is ex-dividend for the recap plan, so we get a $0.67 dividend, plus the regular $0.11 from a couple of days ago.

    http://www.nasdaq.com/symbol/bsbr/dividend-history

    ReplyDelete
    Replies
    1. So really up a nickel today!

      Delete
    2. Yes, had me for a second, whewww........ I was gonna add a TON!

      Delete
    3. Good God, is that yield really over 17%, shocking! I can't afford to sell this sucker!!!!!!! :)

      Delete
  22. Payrolls = 74,000. Slowest job growth since January 2011, and a big ‘miss.’

    (a) Emerging markets up +1.31% at the open. EEM off @ 40.10 (+1.1% gain from entry).
    (b) Miners +1.97% at the open. GDX off @ 21.69 (basically where I opened)
    (c) Brazil up +1.33%. EWZ off @ 42 for a minor gain.
    (d) Will close RYWVX (Rydex 2x Emerging Markets) @ the 1030 am trading window.
    (e) Will close RYPMX (miners) at end of day.

    ReplyDelete
  23. BSBR- Ruins the chart though. Tough for me to play it now.

    ReplyDelete
    Replies
    1. Sometimes they adjust charts for special dividends, but I doubt they will for this.

      Delete
    2. BACML quote already shows the adjustment, it's showing green by $0.09 at the moment, that's how I got the clue today was ex-div.

      Delete
  24. Seems like today's drop is more of buying opportunity than a signal to sell.

    The jobs claims were likely affected by the weather (we had a big hit to ours in Canada too), so we should get upwards revisions over the next couple of months which traders will take as good news.

    ReplyDelete
    Replies
    1. Are employment reports typically slower during winter?

      Delete
  25. CXO - Morning buyers showing up again, but they must've stopped at SBUX first, on their way. Thinking out loud: I'd really like an oil play but think these guys are shooting shareholders in the foot b/c they have to drill(and produce?) or lose writeoffs? Thus it's a taxation issue, essentially?

    ReplyDelete
  26. NWLI - Nicely green as well. Although I can never seem to get a reliable quote on this one it's been climbing steadily. I see no reason to sell anything today either, call me nuts.

    ReplyDelete
  27. BSBR - Man, they announced the special dividend such a long time ago, seems like the owner of record would've been at the time of announcement. That would mean I just got hosed by a stiff 17%?

    ReplyDelete
    Replies
    1. Well, I don't know still, when this special dividend was announced but found this, looks like the record date is Tuesday? Seems there have been numerous "special dividend" announcements, so maybe I didn't get hosed, LOL, it's confusing:

      "January 9, 2014
      Ex-Date: January 10, 2014
      Banco Santander (Brasil) S.A. (“BSBR”) has announced a proposal of optimization of the
      composition of its regulatory capital, whereby BSBR will distribute approximately $0.667280, less
      fees and withholdings, if any, per BSBR American Depositary Share (ADS). The record date is
      January 14, 2014; payable date is to be determined. The ex-distribution date will be Friday,
      January 10, 2014."

      Delete
    2. So basically put, we get to pay taxes on the normal + "special, as announced on occasion" dividends in lieu of the normally scheduled program for harvesting capital gains taxes.

      Sounds almost like an hybrid MLP or REIT Could be, BSBR is taking this route to avoid direct exposure to Brazilian corporate taxation authority? So if one wanted to stay in the game he has to roll the dividend back into shares and pay the taxes on potential future capital gains up front? A responsive trading strategy would seem to entail adding on major pullbacks, paying the taxes up front kinda sucks, though.

      Delete
    3. Thus, my pre-tax gain is a -3% loss at this moment.

      Delete
    4. The upside is, I get my capital back without having to sell shares.

      Delete
  28. I sold onp at 2.7 to take adv of the crash in nm. Long at 9.04 for a trade

    ReplyDelete
    Replies
    1. These are beginning to look almost like H&S formations, LOL, remember the FMD formation? AA seems to be recovering though, so maybe this time really is different.

      Delete
    2. POT looks like it wants to break up and out for a gap down close, steadily increasing. Unlike BDI, down big time again today.
      Uhhhh, sigh.

      Delete
  29. NWLI - Could be volume selling into strength, taking gains off the table for a lower reload for redeployment elsewhere..

    ReplyDelete
  30. NSPH - Closed the gap down today and has come off, crossing my fingers!

    ReplyDelete
  31. I'm confused. Are we trading both BLAT and BALT, or is it only BALT?

    ReplyDelete
  32. JJC - Well, copper is up, a ray of sunshine!

    ReplyDelete
  33. SPX - Sure would like to see SPX rise over 1448 But not too quickly I guess, it should take some time to confuse/vacillate/consolidate.

    ReplyDelete
  34. GGN - ex-div is Jan 15, sporting a div of 11.57% So I guess you want to sell the day prior ex-div(Jan 14) in order to collect the div but avoid the ex-div fallout?

    ReplyDelete
    Replies
    1. When it comes to this one, the real question becomes: How can you be in two places at once when you're not anywhere at all?

      Delete
  35. BALT - Will this puppy retest $5.13 in the coming weeks/days???? I guess so, if the BDI doesn't quickly reverse to the upside.

    ReplyDelete
    Replies
    1. $6.47 is the current hurdle to overcome, for the long side.

      Delete
  36. RYWVX closed the 1030 am window up +2.67% @ 12.75. tgif!

    ReplyDelete
  37. CVI - Successful backtest of 20SMA today.

    ReplyDelete
    Replies
    1. $42.21 is the entry price, based on the current pattern.

      Delete
  38. Spring-loaded indeed!

    (a) EEM now up +1.87% to 40.31. Unfortunately, I exited RYWVX @ the 1030 am est window @ 12.74 (+2.67%). Waiting ‘til end of day looks more like a +4% move.
    (b) On the other hand, GDX (miners) now up +3.7%, which bodes well for my RYPMX position.
    (c) Last, but not least, I am back into JCP on the latest sale in its stock price. Reopening here @ 7.37 (which is lower than my entry on Wednesday). The reason it’s selling off today is as indecipherable as why it sold off Wednesday, or why it rallied on Thursday. To be honest, I don’t think it matters. Investors are fickle. That’s all it is.
    (d) Bonds (TLT) also rallying on the poor jobs report.
    (e) As mentioned earlier, I plan to be back to 100% cash by the close.

    ReplyDelete
  39. Cp I wouldn't stress too much about balt...as long as it stays above prior highs of the 5.6ish level it looks to me like it's just stair stepping higher

    ReplyDelete
    Replies
    1. Today just feels like a bottom to me in the shippers

      Delete
    2. Yeah, I need to focus on a longer term perspective, it's not easy.

      Delete
  40. Not exactly 100% cash. I'm going to give JCP another trading day or two. Small position.

    ReplyDelete
  41. ZGNX - Banged into the upper trend line, and pulled back. Why doesn't some other manufacturer also offer a similar product, or are they so stodgy they stick with the status-quo, supporters of DEA all the way, guns for Mexican drug lords program, through thick and thin?

    ReplyDelete
  42. CP,

    Re BSBR, it sounds like the dividend is being done as a return of capital, which, if true, would mean no tax payable.

    What they are trying to do is get rid of the excess money in the business as they actually have too much capital and I guess can't find good places to deploy it.

    ReplyDelete
    Replies
    1. Okay, thanks again BB, simple return of capital is nice to know, thus I anticipate simply rolling that back into additional shares.

      Delete
  43. Re NWLI, it seems to be in a nice upchannel since mid-2012 and has just bounced off the bottom and looks like it should go to $275ish. Valuation definately supports this and a much higher target.

    ReplyDelete
    Replies
    1. I guess NWLI begins forming another flag, at worst.

      Delete
  44. BALT- I agree TOF. That was very bullish action today given the drop in BDI.

    ReplyDelete
  45. Not bad, not bad at all. RYWVX closed the day @ 12.81, just six cents above the 1030 am closing price of 12.75. So I definitely caught the bulk of the move.

    Furthermore, RYPMX closed up +3%.

    My overall gains on both trades were more restrained, of course, since I opened positions the day before yesterday. That's OK. Now I'm up for the year.

    ReplyDelete
    Replies
    1. Good work 2nd, I'm up this year too, so far, amazing! :)

      Delete
  46. What's out there besides stocks and bonds?

    http://www.marketwatch.com/story/what-to-buy-instead-of-bonds-2014-01-10

    (a) REITs
    (b) Business development companies
    (c) Utilities
    (d) MLPs
    (e) Cash

    I like (e), although I'll be looking into (a) through (d).

    Note that Hulbert interviewed 'a group of top-performing advisers' for his current column. Cash? 'Several of the top advisers also put in a good word for cash and cash alternatives such as money-market funds and certificates of deposit. That might look like a no-win solution, concedes James Stack, editor of InvesTech Research Portfolio Strategy, until “you recognize that bond yields are most likely to rise and the stock market is likely to correct, which in effect means cash will become more valuable over this coming year relative to both stocks and bonds.” '

    'Nuff said.

    ReplyDelete
    Replies
    1. I think lots of people are still in the correction is coming. Just a hunch. I've listened to cnbc all day the past 3 days as I'm driving cross country right now (in Tx today). I've heard the china is slowing down argument a lot. Lots of talk about how this will drag the world markets. I wouldn't be surprised if the opposite happens. The AA CEO said he thinks the china economy will slow but he said from 7.5 to 7.2% and if u think of the dollar amt of gains in. Their economy then it will actually grow more this year than last yr. I've listened to cramer flip from bullish to bearish to cautious in 3 days. He even said that the dry bulk index is a bad omen, not even mentioning the seasonal issues. And his takeaway from the AA CEO was that he was bearish on china. I kid u not. I think his opinions aren't uncommon

      Delete
    2. From Barron's MLP's are overvalued:

      http://seekingalpha.com/news/1503281-munis-the-best-value-in-fixed-income-says-barrons

      I haven't looked into it in detail, but every MLP I've looked at seemed expensive and risk high.

      Delete
    3. My timeframe for holding stocks is longer than pretty much everyone here, but having said that, if you take a 2 year perspective, I really don't see how you can go wrong holding stocks. I think 2014 will be an up year for the stock market (+20%), but I think worse case is a flat to slightly down year as the economy catches up with the 2013 stock market returns and, in that case, 2015 sets up to be a very good year.

      The risk in trying to time a significant pullback is that one doesn't come like we saw in 2013, and we have a slow steady grind upwards in the market. Not that I expect this either, but if we do get a +20% 2014, it means 2015 will be tougher as stocks will be more expensive.

      Either way, I don't see how you can go wrong (barring a major unexpected event) by cheap stocks now with a 2 year perspective.

      Delete
    4. The other thing that occurs to me is that some of things that are sensitive to China like the metals, the TSX Venture, the miners, seem to be moving up recently. Could be another fake bounce, but it would make sense that these would rise if China does well or at least better than expected.

      Delete
  47. Historic BDI
    http://investmenttools.com/images/wfut/crb/bdi_log.gif
    Recent BDI - Is this an H&S, we're now at right shoulder trough (1500)?
    http://investmenttools.com/images/wfut/crb/bdirecent.gif
    Current BDI
    http://stockcharts.com/def/servlet/SharpChartv05.ServletDriver?chart=$BDI,pepmdanrbr&pnf=y

    ReplyDelete
  48. Note the date of this article isn't recent but I find it explanatory
    Will They Never Learn?
    Peter T. Leach, Senior Editor | Nov 03, 2011 10:50AM EDT
    It’s not a problem of too much vessel capacity, but rather good old-fashioned rate wars that have destroyed pricing on the Asia-Europe and trans-Pacific trade lanes. The rate wars have plunged most of the major container lines into the red for the second quarter in a row for the first six months of the year, making this year the quickest down cycle the industry has ever experienced. Carriers suffered record losses in 2009, healthy profits in 2010 and now near-record losses again this year.

    True, the container lines are taking delivery of big new ships and ordering even more of them, but they have to because of the ever-rising cost of bunker fuel. The technology of the engines on new ships is changing so quickly that carriers are forced to buy new ships in order to have any hopes of operating profitably at any point on the future.

    If they don’t order new ships and hang on to their older ships, which burn fuel at a much higher rate, they won’t be able to compete with carriers that deploy the newer, more efficient ships that are coming to market in the next few years.

    So why didn’t carriers learn a lesson from 2009, when they idled up to 10 percent of their fleet to reduce capacity and get freight rates back up? Because so many of them are still fixed on the importance of market share on the major trade lanes.

    “We’re the only industry in the world that has the legal right to set prices,” said one carrier executive of the trans-Pacific trade, where the Trans-Pacific Stabilization Agreement is allowed to set rate guidelines. So why do many carriers ignore those guidelines and slash rates? “Because they’re stupid,” the executive said.


    When carriers finish out this year with up to four quarters of red ink, they will have no choice but to slash capacity next year. Another carrier executive thinks they are likely to park enough older ships to cut capacity by up to a million 20-foot equivalent units next year.

    But that could lead to the same problems that plagued U.S. importers and exporters in the winter of 2009-2010, when carriers rolled containers bound for the U.S. at ports in China and even turned saw containers bound for export at West Coast ports because they didn’t have enough capacity.

    https://www.joc.com/maritime-news/container-lines/will-they-never-learn_20111103.html

    ReplyDelete
    Replies
    1. Sounds like cartel pricing, but that only works if everyone maintains disciple. If some of the members get aggressive, the whole thing falls apart - look what is happening with Potash because of the 1 company in Russia or somewhere over there.

      Delete
    2. I'd say that the worst part of the BDI / dry bulk crash has already passed. i really like this one longer term in case i didn't mention it already. but it is probably going to continue to be volatile

      i took a closer look at the FXI weekly chart and it sure looks like a buy at this price:
      http://stockcharts.com/h-sc/ui?s=FXI&p=W&b=5&g=0&id=p86944398523

      bottoming tail with an inverse head and shoulders pattern forming for past year.

      Also the Sensex continues to build up pressure right near all time highs...looks like its just a matter of time before it breaks up and over prior highs:
      http://www.google.com/finance?q=INDEXBOM%3ASENSEX&ei=bn_RUtD2MeaasQfkxgE

      Both are important for the BDI

      Delete
  49. Yesterdays jobs report is exactly what was needed in my opinion if you're bullish. it continues to give people pause. take a look at this longer term sentiment reading from AAII:

    http://www.schwab.com/public/file/P-6574803/AAIIBullvSP_010614.PNG

    i'm not a huge fan of these sentiment readings because i feel like they may be manipulated but i do like the univ of mich consumer sentiment report:
    http://research.stlouisfed.org/fred2/data/UMCSENT_Max_630_378.png

    It hit 82.5 last month which is the highest since July of last year. by comparison, it was never below 90 from 1994 to 2000 and it was above the current reading from 1982 to 1990.

    ReplyDelete
    Replies
    1. That's a good chart.

      Way too many people use sentiment indicators backwards from the current time when they should use them from the beginning on the previous bull.

      So from this chart, bears will say "look how high sentiment is - almost the highest in 5 years other than a blip in 2010 - people are way too optimistic so we are going down."

      But really, as you point out, it is really just up to the 1994 levels which was a great time to own stocks.

      Delete
  50. Re the BDI, it would have been nice to sell NM at $11 and buy it back now at $9, but if it goes over $20, it doesn't really matter.

    Plus, in my experience, I would have more liklely sold it after the runup into September at $7 and still not be back in!

    ReplyDelete
    Replies
    1. That is exactly the thought process I have been going through with BALT. I probably would have sold right around the current price I'm been waiting for a drop. Or worse yet I would've gotten sucked in at 660

      Delete
    2. Meant to say and then I would have a been waiting for a drop

      Delete
  51. IBN - A bank operating in India. "10-Jan-14 12:36AM India's economy is out of the woods: ICICI CEO

    ReplyDelete