Monthly Archives: June 2009

$STEC Front And Center

I have $STEC front and center for entry this morning . I’ve been following this one for a while now and I think it might give me a BUY signal today.

STEC-061709

I’m also stalking $GOLD again but won’t start salivating until it breaks to all time highs again.

UPDATE: I went long STEC today at $23.67.

Stopped out of WIT

Looks like I got stopped out of $WIT on Monday at $11.77. That’s $1.07 gross profit on my $10.70 entry on 4/15/09. So far my neural market classification system is 2 for 2 with real money. My other trend following system is 1 for 1, let’s see how long my “luck” lasts.

WIT-061609

Still Long Wipro Ltd.

I’ve found that when you combine fundamental stock scans and a neural net classification model, you get good results.   WIT was one of those stocks that passed both my fundamental and neural net scans.  I promptly entered WIT on May 15th @ $10.70 and currently sit on a small gain of 12.6%.  Every month I update the model using a fundamental AAII scan to see if new stocks are added to the portfolio or if they drop off.

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Are you interested to see the other stocks that made the cut from that model?

Hyperinflation? – Part 2

Not only will the Federal Reserve have to raise interest rates by year end, most likely they’ll have to continue to raise them.  To what levels I’m not sure but they’ll try to control this massive inflation bubble (stock bubble, real estate bubble, now inflation bubble? hmmm) by raising rates to possibly over double digits.

Signs that the global economy is emerging from the deepest slump since World War II are fueling bets the Federal Reserve will raise its target interest rate by year-end, futures show. [by Justin Carrigan]

I liquidated my entire position in bonds last week. You can’t double the national debt and not expect nothing to happen financially.

Stopped Out in GOLD

I got stopped out in GOLD this past week, right after Benny started jawboning about the economy and how wonderful it is.  I’m not sad, I got in at $65.45 and stopped out at $70.78 for a gross profit of about 8%.  If this mining stock makes another all-time high next week, then the trend remains intact and I’ll go long again.

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Hyperinflation?

I think we are going to see the beginning of hyperinflation based on how the bond market and our government have been behaving lately.  Granted, there are many variables out there and I’m just taking an “educated guess” here (please no jokes), but if history serves as a guide, we should see a big upswing in inflation.

What does this mean for stocks?  Well we could see a return to the market highs and even some new records.  However, the most important thing to watch is how the US Dollar and Gold/Silver react.  If stocks and gold go up in lockstep then we’ll see the creation of another major stock bubble, which will end badly.

I would recommend selling on the way up and buying metals and commodities.  Green shoots my ass.

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