"THAT'S JUST MY OPINION" - VOL. - 30
On the last trading day of the 2013 - the DOW closed at 16,576.60! Today it closed at 15,879.45!!! Or down 697.15 for the year so far! Or down 4.2056% so far this year! Why? Oh - on Thursday China reported a manufacturing reading that showed the first contraction in six months - 49.6 when the street was looking for a 50.5 number! Argentina is about to de-value!! My question to you is who gives a sh-t!!!!!
Argentina? I'm sorry!!!!! This is a much bigger problem - people buying stocks on margin - because when it goes against them and they get margin calls - they sell!!! NEVER - NEVER buy stocks on margin!!!! This market was looking for an excuse to sell off - well they got that with the retail stocks reporting bad earnings and then C reported bad earnings, which hurt the bank stocks!! So people rushed into buying 10 years, which started the yield curve to flatten - which hurt the entire bank sector!!! Thus hurt the driver of the market to the upside!! So what happens now? Make a list of stocks you want to own!!! And starting Tuesday morning start to buy them on a scale down basis!!!! I'll give you 4 of my favorites.
1. - JCI - buy starting @ $43.50 on down
2. - AIG - buy starting @ $46.10 on down
3. - RIG - buy starting @ $42.65 on down
4. - NKE - buy starting @ $67.27 on down
On Friday I sold ABBV @ $48.80 - that completed my 75% profit - When I bought ABT before it split into ABBV and ABT!
I sold RIG 02/22/14 $41 calls @ $3.60 and lost $410
I sold NKE 02/22/14 $70 calls @ $2.40 and lost $360
I sold C 02/22/14 $50 calls @ $1.25 and lost $295
I sold C common stock @ $ 50.00 lost $103
So with the market being down 4.2056% from the beginning of 2014, my wife and my son are only down 3.263% and I have a lot of cash left to invest when the iron is hot - and it will be soon!!!!
"THAT'S JUST MY OPINION"
Stay tuned - next week will be very interesting!!!!!
Thank You;
Len Dwelle
lendwelle@hotmail.com
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