The Market
- A very solid showing. Market breadth was positive with up shares swamping down. New lows are still much higher than new highs but are no longer 300-700 new lows per day. The Dow gained fifty points in the last five minutes in a mirror image of yesterday’s close. Not only that, the S&P smashed through 775 to close at 778, up 3%. This action will be viewed very positively. Next stop, 800.
- Mid-caps continue to be the place to be. MVV, a turbo-charged mid-cap ETF was up over 8%.
- McDonald’s came alive, up almost 4%, after being moribund for a couple of months. Am thinking that their coffee bars, about which I have been raving for over a year, may be having an impact. Of course, the dollar menu continues to steal share.
- It was a whirlwind, positive day. This will be viewed as a follow-thru day from last week’s gains and should be received well.
- Trades. Sold my Bank of America and GE stock at various prices. Both with solid short-term gains of 10% and 25%, respectively. I’d buy both back if I become convinced of a higher market. Still holding the Citi which is up more than 50%. But I am such a pansy, I only bought 2,000 shares. These “swing trades” are working better for me than day trading. Swing trades can be a day or two or a week or two. Anyway, day trading makes me jumpy and irritable. Am taking it on the chin with Alcoa and am violating my stop loss rule since I am down 9%. After the convert offering is complete I am banking that AA will lift. Added to Dow Chemical and Buffalo Wild Wings. The latest Forbes pointed out that ethanol subsidies may be curtailed, thereby lowering chicken prices. As well, BWLD is expecting strong sales in March, since the basketball tournements don’t conflict with Easter, as they did last year. Am tempted to add to energy holdings, currently XOM, PBR and CHK but didn’t pull the trigger. Initiated a position in AT&T and may have paid-up. But in an era of declining dividends I am thinking that this one, at 6.7%, may have legs. My inverse ETF, TWM, kept my daily gains in check but am comfortable with the arbitrage for now.
- Looking forward to General Mills earnings tomorrow. Stock was almost flat ahead of the announcement.
Sidebar
- My take on AIG, FWIW. If they have contracts with these yahoos, AIG has to pay them. If they pay them the government gets the tax, which it can desperately use. I’d bet that the boys that got paid are significant income producers and could work almost anywhere. Yeah, it is smarmy to see your, and my, money used for trader’s bonuses. Have you noticed what AIG stock has done since this dust-up about bonuses surfaced? More than doubled.
- Earlier today I noted that Barron’s Magazine wanted me to renew at an annual rate of $159. I went to their web site and it trumpeted a $99 rate. As I entered my info and hit send for a new page the price changed to $49. Is this anyway to run a business?
- Notice how almost no one is talking about gold right now? As equities gain footing the lustre dims.
- Last week FAZ, the 3X Financial Bear ETF was $112, Today, $38. Beware of these turbo charged trading vehicles. FAS, the 3X Financial Bull ETF was $2.50 last week and it is now $5.40.
- I attempted to change the innards of two upstairs toilets this morning. By 11am I had parts and tools all over the floor. By 11:30 I had the plumber on the ‘phone. He’ll be here tomorrow afternoon.
Off to the gym to rid myself of the tension built up during this exciting day. Boy, oh boy, ain’t up markets a helluva lot more fun?
