Cody Willard is right. On two counts.
Fiscal cliff negotiations
present a good trade opportunity. Buy on dips, sell on rips, leave some
significant long positions. True, too many people think than we see a
show in Washington and everything is going to be good in the end. As a
contrarian play, it's worth it to buy some protection. I'm thinking
Yes, Cody, Sandy was a black seagull. Not a black swan,
too small for that. But I agree, there are too many people making Wall
Street work who's been affected. And they had to pull some money out of
market, because either insurance isn't paid immediately or it doesn't
cover flood damage (and it doesn't, and even flood insurance doesn't
cover much. Not in the area where houses worth half a million or more.
Several developments this week, in no particular order.
is trying to break 3000 and failing. Technically, it's bad. Past
support is future resistance and future is now. If it breaks and holds,
Dow components rally. Of course, Dow doesn't mean much lately, but worth noting.
Facebook (FB) is up. A lot. Over the level I bought my first portion. Way to go.
are in fashion. Almost every muni CEF reduced payout all I hold did.
Despite that, almost all of them are up. I will do some selling and
readjusting before New Year, watch my StockTalk. I think many people are
moving money from money market and CDs to the next safest (in common
view) investment vehicle. Well, when the crown moves somewhere, time to
think of getting out, eventually.
Corporate debt is not in fashion. That's probably where I'm going to move part of my money from munis.
here! I don't give advice. I advise you not to follow my trades
blindly. I do make mistakes and lose money. Yes, in the years I was
successful, there is no guarantee that it was my brain and not just a
blind luck. Even if it was brain, beware! Brains have a nasty habit to
fade with time. So, do your own research and use your own brain. And
beware the crowds.
Disclosure: I am long FB.
Additional disclosure: Positions can change any time