nuf2bdangrus's Blog

Understanding basic investment terms

nuf2bdangrus — Wed, 30 Mar 2011 19:52:32 GMT

Having been in the business for 12 years, I have thought about how difficult it is for newcomers to understand the :"lingo" of the trade-so as a public service gesture, I have decided to offer a basic list of investment terms and their definitions to makeit easier for new and experienced FOOLS to understand the markets.

Stock- an "equity"...

Long in the tooth

nuf2bdangrus — Fri, 11 Feb 2011 16:10:34 GMT

CNBC prognosticators predicting we break the old highs. Mass perception that the Fed (insolvent as it is) has our backs...the Bernanke "put". High frequency trading blowing shorts on every possible short setup. MOMO stocks like GMCR, NFLX, PNRA, CMG, WFMI having what look like blowoff top patterns. PE's of 50-100 now "expected". Cramer still uring his followers to buy buy buy his FADSCAN....

CSCO

nuf2bdangrus — Wed, 09 Feb 2011 18:44:56 GMT

Dissapoints again. Just goes to show things that seem valuable can become "more valuable".

I would have thought it might bounce more since the washout of last quarter, but now my concern is that any remaining believers will throw in the towel.

Bought a large call spread last week with a net long at 20.70. I thought I had decent cushion...

BALT

nuf2bdangrus — Wed, 26 Jan 2011 15:14:08 GMT

Every time I touch this thing it drops 10% in 2-3 days. Each time the chart shows some support it fails. Dividend yield over 6%, aand in a dividend hungry world, one would think it would price some underlying support to the stock.

Somethings up here. Either market doesn't believe in the dividend...or....??

A lot of bullishness

nuf2bdangrus — Wed, 26 Jan 2011 13:26:40 GMT

The prevailing view is that central banks and bankers (who control the world and governments) will do anything and everything to push assett prices higher. Investors trade accordingly. They may be right. And as long as the good ship QE sails, shorting is a selective and quick proposition.

I've had a good run from September, throwing aside fundamental...

White metals ETF

nuf2bdangrus — Sat, 22 Jan 2011 22:17:46 GMT

Ticker symbol WITE. Unfortunately not optionable, as I love to sell calls to lower my basis. I still think I will buy it. My belief is that white metals will outperform Gold, because they will do well "either way". If we have a recovery, they will be in demand, and if we don't, they will appreciate as a de facto rejection of fiat money. Platinum is 16 times scarcer than gold, but only a tad more expe...

MLK day

nuf2bdangrus — Mon, 17 Jan 2011 09:38:03 GMT

Monday is MLK day. There will be ceremonies, wreaths lain, and numerous people will make their obligatory speaches about what King did and what we must still do. We've named hundreds of streets, schools, and edifices aftef him, but my que...stion today, is do Americans, especially African Americans truly understand the greatness of the man? History is one of those funny things in which social forces slowly gather momentum to correct great...

Calling an interim top

nuf2bdangrus — Wed, 13 Oct 2010 18:12:30 GMT

6 weeks ago, when we were selling off below DOW 10k, and I finally accepted that the double dip that I have long believed in was now being recognised by the markets, I vomited out all of my longs....(and stupidly held my shorts). We all know what happened since...as sentiment has taken a complete 180, with the Fed "All in" on the capital markets.

Imagine you are the head of a household. You have 10 children, 6 of whom work, and 4 who do not work at all. And you are also the CFO of this household. Each month, you need 14 thousand dollars to meet your expenses and hit reasonable growth (2%). But the problem is, you are only taking in 10 thousand, including the income from your working children. . You have a problem. Either raise income from y...

Chesapeake Energy

nuf2bdangrus — Fri, 10 Sep 2010 19:08:58 GMT

HUGE options activity today, both in the September and October call strikes...most of it early in the morning then late in the day.

I don't know what to make of it, but since I'm long Oct 19 calls, I sure would like to see something BIG!!!

AMED

nuf2bdangrus — Fri, 23 Jul 2010 23:36:46 GMT

Didn't take a position yet....still falling like a knife. 25 didn't hold. I'm stuck with it in caps since I green thumbed it..like so many neglected positions I eitehr didn't take or long bailed out of in real $. At one point, some serious coin will be made off this stock, as Mr Market loves th puke things up when uncertainy prevails. Yes, Citron hit them hard months ago, but underneath all this I believe is a core business with growing demographics....

Playing the oil breakout-suggestions on good juniors?

nuf2bdangrus — Tue, 06 Apr 2010 18:30:09 GMT

Covering most of my shorts, except a couple puts and hedges..I have to accept that an overbought market can remain overbought...and the market believes in a full recovery. While I have my doubts, in that the entire "recovery" is based not on production, but by government fueled debt consumption...and bear in mind there are land mines all over the horizon (bankrupting states and cities)

That said..China continues t...

Closed all my shorts

nuf2bdangrus — Mon, 05 Apr 2010 17:25:45 GMT

Except a small position in SRS. This market has done an excellent job of defying gravity. 4 times in the past 3 years i have built sizable short positions just to get blown out..and later be proved right. THe problem with being short, is you never know when sentiment will understand reality

A credit driven bubble is with us again. This time it is the credit of the US gov't. In my view, it's the last ...

The ultimate moral hazard....

nuf2bdangrus — Tue, 23 Mar 2010 20:10:47 GMT

In watching this insane rally continue, and listening to all sides, I find a common theme. Traders, investors, and money runners are biased long because they are using historical precedent to argue their case. And as long as everybody agrees, they will be right, as stock prices are more a result of sentiment than anything else.

I believe this time that attitued is going to prove costly to all but the most adept.

Not even a downgrade of the banks....

nuf2bdangrus — Wed, 17 Mar 2010 18:58:56 GMT

Can shake this market. There is no fear. The government has your back. Down 60 pts? BUYBUYBUYBUYBUY!

I've seen this irrational exhuberance. I don;t know how long it will last. But the bubble loving Fed is ding its wizardry.

It won't end well. Cash levels are at record lows. When the inevitable bad news hits, we will again find o...

overbought

nuf2bdangrus — Wed, 10 Mar 2010 16:00:13 GMT

IWM up 20 of last 23 days

marktet pulls anotehr spectacular V shaped reversal off the correction lows. OUr instant gratification society doesn't wait....buybuybuybuybuy

Fundamentals be damned Bad new? BUY! OIl inventories up? BUY COnsumer and business sentiment down again? BUY

The whole rally is funded by government bor...

What me worry??????

nuf2bdangrus — Fri, 05 Mar 2010 19:23:36 GMT

Unemployment is at 10% (9.7) real unemployment is closer to 17

Same store sales are "UP", but that doesn't reflect the reality (as its on existing open units and doesn't reflect closed businesses)...which we can divine from tax collections...which are DOWN

68% of the population receives some income from the government (fed state local)

1 in 8 people is on food stamps

We borr...

We are still denying reality

nuf2bdangrus — Thu, 25 Feb 2010 15:44:11 GMT

80% of the stimulus has been spend on non productive measures, extended unemployment benefits, aid to states and cities, etc. 1 of 8 Americans is on food stamps. I read recently that 2/3 of Americans get some level of subsidy ffrom governments. We've borrowed a trillion dollars, and now created defecits as far as the eye can see.

In hind sight, of course the stock market would rally. Sales and earnings are...

Whole Foods

nuf2bdangrus — Thu, 25 Feb 2010 14:51:56 GMT

Really? PE is 41. and it's up 2% on a major down day? Am I one of too many shorts? Or are there still morons who love to chase hot stocks?

And correct GOLD did...

nuf2bdangrus — Fri, 04 Dec 2009 20:30:47 GMT

I had my mouse both on DZZ and on GLD puts...and didn't pull the trigger....too many trades on the table