Monday, March 2, 2009

Some Stop Management

Watching Mario Gabelli and Bob Doll on CNBC this morning inspired me to write this short post. Rather than babble on as these so-called pundits on CNBC do I thought I would mention just a couple of salient points.

In my opinion we are nowhere near a bottom so long as cats like Doll, Gabelli, Farrell and Company continue to call for one. What I am absolutely shocked is that no one on the Panic network, (yes I know I call it the pom pom network, but given the state of GE's stock price, and the overall equity market I can assure you that it is in a state of transformation to panic !), has the guts to ask these gurus what their uncle point is.

You know, the point where you swallow your pride, and humbly admit you are wrong. I realize that this concept is not taught at any of the elite business schools of this country as failure is for losers. Please don't hold your breath waiting for these guys to admit error as they have made fortunes living off the crumbs of others and need public participation in the markets, (which is called the 'greater fool theory' at those Ivy League schools), to keep them in good humor, and on the platinum donor alum list. Besides, the ego stroke at their age is to quote MasterCard, priceless ! You can bet the under on any of this happening as it would take a real financial journalist to ask questions like these and CNBC is in extremely short supply of those.

In these financial, masters-of-the-universe's world, being wrong and wealthy is much more important than correct and poor. I am so sick and tired of the shameless pumping and cheering as the ship is sinking that I want to scream. Rest assured none of the above mentioned men will be left in the lurch financially as they are too shrewd to get caught in the vise that awaits their legions of followers.

To0 harsh?

Too acrimonious?

Possibly, but I more than welcome any rebuttal to my diatribe from above mentioned financial royalty or their yes-men, degree laden clones.

To those still listening to these shills, what can one say except just keep buying stocks. Double down. Better yet, focus on those those juicy dividend paying stocks. Those same ones where the CEO tells you over and over (a la Jeff Immelt) that the dividend is safe just before it gets hacked. Just be sure you factor what the dividend yield is when the payout is chopped by 1/2 or 3/4 or worse is paid out in stock. Kinda like those IOU refund cheques to taxpayers in California.

Oh yeah, before I forget, some stop management.

Housekeeping notes;

I am moving up my stop on 1 unit of SDS to $93.42 while keeping the 2nd unit at $83.28

I am moving up my stop on 1 unit of EFU to $123.28 while keeping the 2nd unit at $114.78

I am moving up my stop on 1 unit of SRS to $75.42 while keeping the 2nd unit at $64.72.

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 2 units Ultrashort MSCI EAFE ticker EFU @ $89.80 stop at $114.78/123.28
Long 2 units Ultrashort S&P500 ticker SDS @ $69.80 stop @ $83.28/93.42
Long 2 units Ultrashort Real Estate ticker SRS @ $53.80 stop @ $64.72/75.42
Short 1 unit Apple ticker AAPL @ $102.05 stop at $100.11
Short 1 unit Apollo Group ticker APOL @ $82.95 stop @ $82.95
Short 1 unit Microsoft ticker MSFT @ $19.20 stop @ $19.20
Long 1 unit Int'l Coal ticker ICO @ $1.51 stop @ $ 1.47


Raj said...

Awesome rant, HD. I was expecting a juicy one from you after Friday and you did not disappoint.

Congratulations on EFU, wish I had seen your call earlier as I completely missed the bus on it. I see you are still in APOL as am I.


Harleydog said...


thx. conintued success to you.