When markets start to change character as they are right now, its wise to revisit and possibly change your perspective. I’ve been outright bearish for quite a while but long term data suggests that the type of strength we’re seeing in US equities could be the start of something substantial.
My belief is that investors are coming to grips that we are not about to plunge into recession soon and that stock prices had built into their values a full fledged recession. Hence stocks are adjusting to valuations of slow growth. In addition many measures of sentiment were down at March of 2009 lows…..need I say more?
There no room for ego here and discipline trumps conviction. My TZA was closed out today at $39.75 for a loss of $6. However in its place we are reasserting our customized portfolios for what will hopefully be at least an intermediate termed rally. My expectations are a rally into January.
Stock selections include:
TESS
CLUB
HIT
CRD.B
DK
NTL
FRP
SUSS
IEP
Long all positions
Brad