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The Stock Trading Advisor’s “From
the Trading Turret”
From: R.A. Christy
Editor, ‘From the Trading Turret’
President/CEO, Christy Investment Group
http://www.christyinvestments.com
Date: October 22, 2007
Current Field Position:
DEFENSE
Bullish Percent Indicators:
BP NYSE
Os @ 56%
BP
OTC Xs @ 48%
BP
Option Os @ 54%
BP S&P
500 Os @ 60%
BP
NASDAQ Os @ 66%
Favored Sectors: Gaming, Gas Utilities,
Non-Air Transports, Oil, Telephone, Oil Service, Precious Metals, Autos
and Parts, Waste Management, Semiconductors
This week’s diatribe …
What a mess!
The best laid plans and all of that right
out the window. A week ago, I was umpiring a baseball game and took one
for the guys in blue. A foul ball slammed into my chest protector and
then ricocheted off my chin. I took a standing 8 count. The pitcher that
threw the pitch was from Arkansas and I fully expect him to be drafted
in the spring. His fastball was in the mid-90s and his slider was one of
the best I’ve seen. Did it hurt much? Yep.
To say that I’m behind a tad is an
understatement. My headache has subsided and I’m once again eating solid
food. Soft mind you – but at least solid.
I’ll be putting my piece of the 20th
anniversary of Black Monday up in a few days so be on the lookout for
it.
Defense!
Stocks got whacked the other day as
earnings continued to disappoint. The shellacking was pretty complete
and we’ve sent the defense onto the field.
I’ll have more in a day or so, but for
now, make sure you have stops in place on all positions and have a sense
as to what you’d like to do if and when you have to pull the trigger.
We’ll be initiating new shorts as appropriate and raising cash as we
take a few profits.
Adding to all of this is that bonds yield
fell as investors started moving to cash. The ten year bond finished
last week at 4.40%. At this level, the experts are opining that the odds
for a fed funds cut at the end of this month now stands at 99%. Would
someone please let Bernanke in on this?
Oil looks to be headed to $100.
Congressional leaders want to hold hearings, etc. Looks to me like the
speculators are going to get hammered on this one. It still boils down
to supply and demand but don’t tell anyone in Washington. If you look
closely at the inventory levels, you’ll see why the prices are going up.
The financial firms tell us that the
sub-prime credit losses will continue. I’ve long said that we’ve only
seen the tip of the iceberg on this – but why in the world wouldn’t
everyone in the world write down and or off everything but the kitchen
sink. The talking heads tell me that the ones most affected by the
sub-prime mess are banks, mortgage lenders and home builders. Do you
think so? This is award winning journalism at its best.
On the dollar front, lower interest rates
mean a lower dollar. The G-7 (US, Canada, Germany, Italy, Japan, France
and Great Britain) are pressing China to let its currency rise more
rapidly. They point to China’s “current account” surplus. The
politicians need to be careful here – they may just get what they’re
looking for. And if you think the dollar is under pressure now – just
wait.
On the political front, not much is really
new.
Justice Thomas has a new book out and the
appropriate parties are outraged. I just got the book and will let you
know what I think.
Nancy Pelosi seems eager to have us go to
war with Turkey. I don’t understand this Armenian stuff (yet) but I have
to admit that it’s not a pressing priority.
In Georgia, former Gov. Roy Barnes and
former Lt. Gov. Mark Taylor have come out and endorsed former Senator
John Edwards. Given the way these two were bounced from office, Edwards’
candidacy is doomed.
Hillary seems to have a problem with her
donors. The Chop-Suey connection is troubling. When it’s all said and
done – is there a quid pro quo in all this? President Clinton had his
Chinese connection and now we have it again. If there is something going
on, we’re in deep doo-doo. To me, there’s a lot of cash and not much
record keeping going on.
She’s built a tremendous war machine and
is bursting at the seams with money. Unless she does something utterly
ridiculous, the nomination is hers for the taking.
As to the portfolio, I’m bumping up the
stops pretty tight. I don’t want anything to get away from me. I’m
looking for some shorts and we’ll most likely use ETFs or put options to
pull these off.
Any new long positions will be toe-testers
only.
As always, if you have any questions or
comments, don’t hesitate to get in touch with me.
That’s it for now.
RA Christy
The Stock Trading
Advisor
P.S. Please fee
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R.A. Christy is a professional stock
trader, money manager and author. Mr. Christy is the President CEO of
Christy Investment Group, Ltd., a registered investment advisory firm.
He is also the Managing Partner and Portfolio Manager of Plato Advisors,
LLC. 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.
The Stock Trading Advisor
c/o Christy Investment Group
P.O. Box 625
Alpharetta, GA 30009-0625
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© Copyright 2007 RA Christy
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