"THAT'S JUST MY OPINION" - VOL. - 22
Let's try to figure this market out together! Let's examine what we know.
1) This winter has affected over 150 million Americans for a long time now!!!!
2) Ask yourself - "do people go out in this weather to spend money?" - In restaurants, or on home improvement items or on gasoline for long trips? - the answer is NO!!!!! The only things people go out in this weather is to buy food!!!!
3) That's why the retail stocks had lousy earnings!! Their biggest month in sales is in December!! December weather was atrocious to say the least!!!!
4) Traders at the beginning of January started taking profits in stocks they made money in - in 2013 Why?
so they do not have to pay tax on those profits till April 2015!!!
5) Investors poured in BILLIONS OF DOLLARS into emerging market funds in during the 4th quarter of 2013 - BIG MISTAKE - As far as I'm concerned there is only one place to put your money to work - And that is in the greatest country GOD ever created - The good old USA!!!!
6) Emerging markets did nothing to prepare themselves from our FED tapering!!! They were warned months in advance of the start of taper and did nothing to prepare for the event!!!!
7) Starting in January investors became worried about emerging markets and the European economies with markets in Asia and Europe seeing significant losses and there are other troubled economies like Argentina, Turkey, Brazil, South Africa, and Indonesia according to analyst Dick Bove.
8) Jan. 30th ( Reuters) article by Sam Forgione and Jennifer Alban - "Investors in funds based in the US pulled $2.6 BILLION from emerging market stock funds in the week ended Jan. 29th 2014"!!!!!!!!!
9) Can you imagine how many foreign investors pulled out of emerging market funds!!!!!
10) We still have a lot of earnings to report between now and till the end of Feb.!!!!!
11) We know most of the retail stocks have reported lousy earnings and I believe it is weather related!!!!
12) There have been many companies reporting great earnings and their stock prices have been slammed - which presents great buying opportunities!!!
13) Bond prices have rallied - yields have fallen dramatically!!!!! WHY? You would think with the FED tapering rates would rise!!! I have a theory - With all the BILLIONS OF DOLLARS flowing out of emerging markets - that MONEY went into US Bonds!!! Creating a flattening of the yield curve - so what you say - well I tell you so what - our bank stocks which have led our stock market rally - started to fall in price! Why is that? Investors believe that when the yield curve flatten - their earning will diminish!!!! That dragged the rest of the market down!!!!
14) What's the answer? Make a list of stocks you feel will be much higher than where they are trading at today in the next year!!! DO NOT BUY THEM ALL AT ONE PRICE - USE SCALE DOWN ORDERS!!!
"THAT'S JUST MY OPINION"
Let's look at the DOW
The DOW closed at 15,698.85 - For the week the DOW was down 180.26 or down 1.14%
On a weekly chart - the DOW shows support at the 50 week moving average which comes in at 15,311.21!!!
This is where I believe we will get a tremendous bounce !
Now let's look at what I own for my wife and my son.
DIS - Closed for the week at $72.61 or down .11 cents or down 0.15% for the week.
Remember I sold cover calls 03/22/2014 $77.50 calls at $2.40 or $240 a call - remember every call controls 100 shares of stock!
AIG - Closed for the week at $47.96 or up .10 cents or up .26% for the week.
Remember the reason I bought this stock was that BILLIONAIRE Lee Cooperman owns 5,806,600 shares - follow the money!!!
SD - Closed for the week at $6.15 or down .15 cents or down 2.38% for the week.
Remember why I bought this stock - Again Lee Cooperman owns 34,256,163 shares - again follow the money!!!!
MU - Closed for the week at $23.04 or up .12 cents or up .52% for the week.
Remember why I bought this stock - Another BILLIONAIRE David Einhorn - this is one of his favorite stocks for 2014!!!
JCI - Closed for the week at $46.12 or down $2.09 or down 4.34%
Reported great earnings and even better guidance - yet the stock got slammed. I'm looking to buy more at $43.56!!! This is a stock that could potentially spin off some of its parts - creating more shareholder wealth!
RIG - Closed for the week at $ 43.28 or down .97 cents or down 2.19% for the week.
Carl Icahn owns 21,477,900 shares!!! This stock yields 4.60% - If the stock price falls the yield will get even bigger!! I am looking to buy more at $ 42.66!
NKE - Closed for the week at $ 72.85 or up $1.20 or up 1.67% for the week.
NOW FOR 2 STOCKS I STARTED TO NIBBLE AT THIS WEEK !!!!!!
CHK - I bought a little at $27.01 - looking to buy more on a scale down basis - I'll let you know know when I buy more and at what price.
Carl Icahn owns 66,450,000 shares!!!
FDML - I bought a little at $ 18.01 - looking to buy more on a scale down basis - Again I'll let you know when I buy more and at what price.
Carl Icahn owns 121,111,976 shares!!!
"THAT'S JUST MY OPINION"
Have a great trading week!!!
Thank You;
Len Dwelle
lendwelle@hotmail.com
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