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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: November 10, 2007
Current Field Position:
DEFENSE
Bullish Percent Indicators:
BP NYSE
Os @ 44%
BP
OTC Xs @ 36%
BP
Option Os @ 42%
BP S&P
500 Os @ 46%
BP
NASDAQ Os @ 42%
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 week. If you’re bored, you haven’t been paying
attention. It’s about to get interesting.
The sub-prime mess is proving to be one of the biggest
financial debacles of all time. Just about every bank is airing their
dirty laundry and several have already thrown the bosses out with the
bath water. It’s not over by a long-shot.
Jesse Jackson met with Bernanke last week and aired his
concerns about the “right” to own a home. Note to Jesse: homeownership
isn’t a “right”; it’s a privilege that comes with a heap of
responsibility. If you don’t know what you’re getting into, you
shouldn’t sign the paperwork.
The Masters of the Universe are in a heap of hurt and I
still think that Bear Stearns (BSC) and Lehman Brothers (LEH) are
takeover targets. I’ve added Goldman Sachs (GS) to the watch list.
Goldman is hemorrhaging money and something tells me that they have
their butts covered. The overkill in these names is making them
attractive.
The stock market continues to confound. Suffice it to say
it’s a mess. This isn’t to say that profit opportunities don’t exist –
they do. We just need to find them and take advantage of them.
Fed Chief Bernanke met with Congressional leaders on
Thursday and Congress didn’t disappoint. The ineptitude shown by our
elected officials was embarrassing. I think every elected official
should have at least a superficial understanding of economics. It will
never happen, but it’s nice to think about.
Former Fed Chairman Alan Greenspan tried to steal some of
the limelight from the current Fed Chief by saying that a recession
isn’t likely. It’s time for Alan (I never paid much attention to that
sub-prime thing) Greenspan to retire.
The dollar slide continues. Xu Jian, vice director of the
Chinese central bank, told the world that China was going to dump the
dollar. His exact quote – “The dollar is losing its status as the world
currency”. At last count, China held about $1.4 trillion greenbacks. If
China bails on the dollar – pity the fool holding them.
I talked about this at Grove City College and really
through them for a loop. This is serious stuff and it’s a real problem.
In another dollar story, New England Patriot quarterback
Tom Brady’s girlfriend, supermodel Giselle Bundchen, is demanding that
her future paychecks be in any currency other than the US dollar. I feel
better for just getting this out of my system.
General Motors (GM) announced a $39 billion dollar loss.
It looks like more sub-prime stuff and for those who didn’t know, GM is
really a finance company. It sells cars as a side business. We’re short
this stock and will stay short for now. I just can’t fathom why it has
any market value at all.
With all the “Green” Energy making headlines, I’m
thinking it’s high time to spend some time researching and boning up
again on nuclear energy. I’m looking at Execlon (EXC) and Entergy (ENT)
to be specific. There’s new technology on the horizon that is going to
make the current enrichment methods obsolete and these two companies are
at the leading edge of it.
Gold has been in the news a lot lately. I’ve owned it off
and on for years and its back on my radar screen. The reason is that
Mark Haynes, one of the CNBC talking heads, was laboring on about how
stocks are such a “guarantee” over the long-haul and that gold is really
a “hit-or-miss” investment.
When I heard this, all sorts or red flags and sirens went
off. The perennial perma-bull is talking out of turn and the contrarian
in me says to pay attention.
$100 Oil
We’re just a few points away from the century mark and it
looks like we’ll be here for a while. Worldwide demand for oil continues
to increase and the supply is dwindling. That’s the good news. Oil
magnate, T. Boone Pickens, is quoted as saying that the only way to curb
the current demand is a drastically increase the price of crude oil.
Basic economics is all about supply and demand. Demand is
what it is. Increasing the price serves two purposes: one is that it
will slow the demand and two is that it will help re-allocate the
existing worldwide supply.
Alternative energy is a nice concept, but it won’t work
on a global basis in the near term. Long-term, opportunities abound.
I’m adding Kaydon Corp (KDN) to the watch list today.
I’ll be spending the weekend pouring over research and
trying to watch a little football.
Stock Trading Advisor Subscribers
should be on the lookout for “stop loss” updates and portfolio
additions/deletions.
Please note: The stocks that I’ve added to the watch list
are for information purposes only. I am only interested in the names at
this point, but have not yet added them to one of the portfolios.
As always, if you have any questions or
comments, don’t hesitate to get in touch with me.
That’s about it for now.
RA Christy
The Stock Trading Advisor
That’s about it for now.
If you have any questions or comments,
just send me an email and I’ll be happy to lend a hand.
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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