It appears the Euro isn't getting beat up lately and can finally tread water. However, a lot of pressure is still showing on Spain and if there is a next shoe to drop in Europe it appears it might be Spain.
WAMPQ pretty much saved my week. Their court case in WA ended undecided on Friday with the judge deferring to a written ruling this coming week. It really was a minor case overall and the real action will be in Delaware this week. That will make or break us shareholders in the short-term. I am holding because I think we have a better than 50/50 shot of coming out ahead in DE.
Moved into a mostly cash/net long position on Friday. I re-upped on CDE, buying shares at 14.23 and Sep 17.50's at 75 cents. It seems certain my Jun 16's will expire worthless, however I am going for broke. I am hedged with SLV 18 puts at 53 cents. If it is anything like the past, JPM will do everything in its power to get silver spot to close lower on expiration week.
I sold off a vast majority of my BIDU puts this week. I just don't think I'll have the stomach to hold out for when BIDU finally is priced to reality. It was a nice gain, though. It could have been a lot larger if I got out on top.
I just don't think the next round of QE by the Fed is going to happen this summer. I think we are going to have to be patient and wait until Fall/Winter for them to finally go for broke. I am guessing/betting gold and silver will outperform moving forward either way.
At this point, if I had to choose where the S&P closed on Dec 31,2010 I would probably guess around 1300. I know it should be trading much, much lower. However, the hedge funds/banks/autobots have shown they are more than happy to continue to lever themselves into oblivion. The banks, for sure, have no other alternative than for the S&P to hit 2000 before it gets back under 800 ever again.
Deflation cannot happen on a wide-scale or its game over for the Fed. They have plenty of time to maneuver, though. The Fed will eventually kill the dollar again, in respects to gold. They just don't have an urgent need to do it at the moment.
The market is rigged. IF there is one thing you ever come close to understanding about the stock market right now is that it is rigged. Learn exactly how it is rigged and you can plan accordingly. Once you can truly accept it as being rigged, you are finally ready to trade this market. If you continue to think it is not, then you are just the sucker sitting at the table.
Buy and hold is officially dead and its not coming back anytime soon. I wish it would, though. Life would be a lot easier right now. Albeit, much less profitable.
Buy with your head, sell with your gut.
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