Never underestimate the power of a Bull. Off of virtually no news the market snapped back for technical reasons (in my opinion.) Yes I know about a possible israel/hamas truce, and Republicans are talking to Democrats.. all that jazz helps the bulls…but the real reason we bounced so hard today is because the market was significantly oversold, and investors were overloaded on bearish sentiment.
By mid-morning I was 90% long stocks… and I had as much as 120% long exposure in the afternoon…
However, because we still do not have details on a fiscal-cliff compromise I decided to hedge some of my longs at the end of the day by shorting SPY. Effectively 60% of my longs are hedged overnight. Tomorrow’s action will determine how I precede from here.
Many thanks to the People who sold me AAPL shares around $536 this morning before the market opened.
It is always better to be lucky than good in this game. LYB announced a special dividend today of $2.75/share… In the face of a lowered price target ($49->$46) from UBS, I added to my position… how contrarian?
I added CSTR to my long portfolio, the valuation is very attractive and I like the business model. In addition, they have good prospects of competing in streaming with the help of a new Verizon partnership.
Coinstar’s valuation could also make it a good take out candidate by a larger content streaming company, entrainment company… even private equity could also be interested.
Honestly if I had enough capital to take Coinstar private, I would.
Top portfolio performers today:
DDD +8.5% AAPL +7.2% SWHC +6.5% NKE +4% AGU +3.7%