Wednesday, May 25, 2011

Buyin Waste Management

Bought some Waste Management (WM) today. I'm trying to get a feeling of this market, and passive observation doesn't work so far. WM was one of the stocks in 4x2 signal today. This system isn't working anymore, but together with other signs can help. I wanted to buy something, because current pattern is down on Monday and Tuesday, turnaround on Wednesday, up on Thursday and maybe on Friday.
Of course it might not work. It's trading, not winning.

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Remembering Mark Haines

This is a sad day. We will never hear again "From the financial capital of univers, this is Squawk on the Street". We won't hear how mighty CEOs and fund managers are cut down to size (sometimes small size) in several words.
Mark made CNBC alive. It was real reality show, not just a dry informational stream. I enjoyed his jokes, his mild attitude, nicknames he gave to people working with him. I will miss him.
Thing I remember the most? March 10, 2009, half joking, Mark said, that S&P 666 intraday on previous day looks like a bottom. And it was. Mark was one of only two people who called that huge, generational bottom.
Rest in peace.

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Tuesday, May 10, 2011

Closed EAD

Tornado season began in Minnesota. Touchdown 3 miles from home, scary.

I closed my Wells Fargo Advantage Income Opportunities Fund (EAD) position. This is a closed end fund, and it currently trades at almost 5% premium to net assets value (NAV). This is too much. Discipline says that I can't hold CEF with more than 4% premium.
This is a good fund, it made me money and it pays good dividend. I will buy it back when it trades at discount to NAV.
I still think that corporate debt is a good place to be right now. I'm looking for some alternative to EAD right now.

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Thursday, May 5, 2011


When buying Deckers (DECK) two days ago, I thought that I can keep it for a while. But it was up more than 8% from my buying price intraday today. Discipline tells me to sell in such cases, profit is to be taken when you have it. So I sold it. I can buy stock back if it goes down a little bit more. If not, well, you can't win them all.

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Wednesday, May 4, 2011

You Should Own Stocks (Answer to James Altucher)

I like James and read almost every his article and blog post. I can agree or disagree with him, but his ideas are quite interesting. I strongly disagree with this article, here's my rebuke.

James' reasons not to own stocks and my response.

1. You’re not that good at it

Well, maybe. But even if you worse than professionals (which is a big question), you are still OK if you make decent money. And in today's market everything above 3% is decent.

2. Your competition wants to slit your throat

Not exactly. They want to make money, that's it. If you still make money, who cares if Buffet makes more.

3. Competition, part II

Sure, there is a crowd of crooks on Wall Street. I'm still making money in stocks since 1998. You can too.

4. Competition, part III

Computers are great. As an IT professional, I know that. I also know that computers are only as good as the code you put in them. One wrong assumption, and instead of decent profit you get a huge loss. If it were easy, programmers would be hard to hire, they'd be trading stocks. Well, I am a programmer and I'm trading stocks part time. I'd be glad to do it full time, but it doesn't work this way for me. So far.

5. It’s mostly a scam

Who cares if you make money off it?

6. True wealth in the stock market only comes if you make all the wrong decisions and then get lucky

Dunno. Bad examples here. Buffet didn't invest everything in one company, he created a company and invested its money in a lot of different companies. Gates didn't invest anything, he just created a company and successfully made it an OS monopoly. Of course, both were lucky, but they knew what they were doing.

7.The best investors in the world make on average between 10 and 15%

And ain't it great?! If you can make more anywhere else, take you money there. If not (and most of us can't, saving accounts pay 0.1%, money market 0.3%, if you are lucky), stock market is a place to be. Even if you are not as good as the best ones and take paltry 7%. Somehow I averaged 14% since 1998 and I don't think it makes me the best investor. Or does it? Contact me ASAP if you think so and have a business offer.

8. Competition, part IV

High speed trading is for computers. But looking at current market, I still see a lot of room for people. Volatility is big, you can make money off it. Or find several high growth stocks with good potential and buy them for several years hold. Or buy stocks with 6-7% yield.

9, Well, what about daytrading?

Yeah, it's a separate discipline. I think it should be full time job. Don't have guts for it. I still make money in stock market.

10. Stocks are really boring

Wrong! It's fun! At least for me.

And now, my reasons to be in stock market

1. It's really fun. At least for me.

2. You can really make money by using your brain. Directly. If you think better than half of the market participants, you make money.

3. It's the best way to grow your money.

4. It's fun. What, I'm repeating myself? Well, so be it.

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Tuesday, May 3, 2011

Back From Vacation

Paris is great in April! Returning to Twin Cities when it's around 33 degrees isn't so great. I hope it gets warmer soon, I'm tired of the last winter and of spring which isn't much different from winter.
I opened position in Deckers (DECK) today. This is a great company, fast growing and trendy. I know, I know that UGGs don't look that great, even when on great legs under a mini skirt. But that's just my opinion. I don't smoke either, which doesn't prevent me from having big positions in Altria (MO) and Phillip Morris International (PM). Besides, I like my UGGs when it's below zero, which happens a lot in Minnesota.
I watched this company for some time, looking for an opportunity. I think I found one. Stock is down a lot after reporting a quite good quarter. OK, we like buying low. I will be buying more on the way down, if it really goes down more.

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