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From the Trading
Turret
January 20,
2006
Current Field Position
1. Offense (Capital Appreciation) OR Defense (Capital
Preservation)
NYSE Bullish Percent: Offense
Optionable Stocks Bullish Percent: Offense
OTC Bullish Percent: Offense
Overall Posture: Offense – with some pretty tight stops
2. Sector Bell Curve:
Average Sector Bullish Percent is 59.40%
3. Favored Sectors:
Software, Semis, Telephone, Biomed, Bus Products and Gaming.
4. Strategy: We are
currently on Offense and are using plays from our offensive playbook.
I’m looking at a number of names right now to buy on pullbacks – I’ll
keep you posted on the price action.
This week’s comment …
I hate January. It’s by far the worst of the months. I
think what bothers me the most are the forecasts. Why bother. Most are
wrong, some are really wrong and nobody pays the piper for being wrong.
Plus – how can you predict the unpredictable?
My daughter just says I’m in a bad mood. Well I am – so
here’s this week’s diatribe.
1.
My prostate problem – I may as well put
this one first. Let’s just say I have a problem and it’s a major
inconvenience. I would pay a King’s Ransom for a good night’s sleep. I
mean 8 hours of unconsciousness. The doctor is juggling the medicines so
that I won’t get sick(er) and won’t pass out. Most of the medicine used
to treat prostate problems lowers your blood pressure. Let’s just say I
have woozy and light-headed down pat. I’m researching every drug company
right now because being 50 isn’t what it’s cracked up to be.
2.
Banks. I really hate banks. Right now
Wachovia
is in my cross hairs because they’ve lost my second direct deposit in 1
year and they inadvertently closed Ashley’s account. I finally found a
person who took the time to find out the problem – but it only took me 3
branches in Roswell.
Fifth Third – I’ll
just say this – If you’re a customer or a shareholder you get what you
deserve. This is a short sale – so if you want to front run me, go
ahead. In the next 3 days, I’m going to short a huge block of this
stuff. I’ll put my reasons for doing so on the blog (http://tradingadvisor.blogspot.com).
The only bank I do like is
PNC. I may buy it
back to hedge the Fifth Third.
3.
The yield curve inverted this week.
Short term rates are higher than Long term rates. This is
not a good sign and should be the lead story on every newscast. It’s a
classic sign of a pending recession.
4.
IRAN.
There are some folks in Washington that have no
trouble blowing this country off the face of the planet. Let me see if I
have this chain reaction right – blow up oil fields – wreak havoc in oil
market – wreak havoc in derivatives – crush emerging market debt – tick
off Russia – really tick off China. $100 oil looks to be the least worry
in my mind.
5.
The Financial Times reports that
IRAQ is going to
sell bonds - $2.7 Billion to
be exact. Who in there right mind would ever think of buying these
things? Uncle Sam that’s who.
6.
Our federal debt is now over $8
trillion and the money supply is rising at 20% plus. At least there’s a
new season of American Idol to worry about.
7.
As for the managed accounts,
we’re still short
Tetra and GM. The President of Toyota said last week that
our Federal Government will need to bail out the company. That ought to
help sales!
8.
On the long side, I haven’t added
anything yet this year. I have upped the stops so any decline whatsoever
will cause them to get tripped.
The Katie Couric effect
worked like a charm. If you’re not familiar with it, whenever the stock
market news makes the Today show, it’s time to cut and run. After she
breathlessly reported that the Dow had broken the important
psychological barrier of 11,000 – she opined is it now time to buy
stocks? Don’t even get me started.
9.
On an Admin note, I’m trying to FIX the
Penson error on the statements. Our address is PO Box 625 Alpharetta GA
30009. Please don’t send anything to my home address. How that address
found its way onto the statement I’ll never know. Also – the phone
number for the office is 404-906-5443. They also have the phone number
wrong as well.
10.
Recaps are done and I’ll be sending
them out with notes starting this weekend. I’m sending as many as I can
electronically in pdf format. If I don’t have an email address, I’ll
send out the hard copy via snail mail.
11.
I’m still working on the website (www.christyinvestments.com)
to make it more educational. If you have a browser other than Mozilla or
MSN, let me know what you think. Also, if there is any information that
you would like to see – just let me know. I think I’ve added about 30
pages or so of content.
That’s pretty much it for the diatribe. Have a great
week!!
Happy trades,
Bob
Robert Christy is a professional
stock trader, money manager and author. Mr. Christy is also the
President CEO of Christy Investment Group, Ltd., a registered investment
advisory firm. At the time of publication, Mr. Christy may from time to
time write about stocks in which he, Christy Investment Group Ltd or
Plato Advisors LLC has a position. In such cases, appropriate disclosure
is made. Under no circumstances does the information in this column
represent a specific recommendation to buy or sell stocks. Mr. Christy
appreciates your feedback and invites you to send it to
rac@christyinvestments.com.
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