Just a quick notes...
Dow hitting new high is the headline news everyday now, (as if it really matters). As a second thought, it does matter. Do you know the market hit the highest in 1987, right before the crash?.
It may not happen this time. The truth is nobody really knows. But I do think the current market high comes too quick, and yet to prve that it is sustainable. And I continue to hold the bearish view on the market in the next 6 months.
Let's talk about the strategy first.
1. I thinkthe next 30 days is the excellent opportunity for the energy / gold sector sector investment. My recommendation for energy sector are COP and APA. Gold sector is simply GLD. This is a quite denfensive strategy and is based on my bearish view on the market in the next 6 months.
2. If you have appetite for global market, EWJ (MSCI Japan iShare) is currnetly very reasonably priced. It is a double bet on both Japan Market and USD/JPY exchange rate. This is based on my bearish view towards USD.
3. Investment is much less fun without small cap. Some new small cap stocks I am watching now are: CECO, NVT, PLT. I still hold NTE (You can still buy NTE if you haven't yet), RICK (quite high now, my friend Jaewoo has a few articles about the stock ), SNHY and SCHN.
p.s. as I mentioned in the last 2 posts, COP is a good buy around $56 - $57. Don't miss the chance when it gets there in the coming 2-4 weeks.
It may not happen this time. The truth is nobody really knows. But I do think the current market high comes too quick, and yet to prve that it is sustainable. And I continue to hold the bearish view on the market in the next 6 months.
Let's talk about the strategy first.
1. I thinkthe next 30 days is the excellent opportunity for the energy / gold sector sector investment. My recommendation for energy sector are COP and APA. Gold sector is simply GLD. This is a quite denfensive strategy and is based on my bearish view on the market in the next 6 months.
2. If you have appetite for global market, EWJ (MSCI Japan iShare) is currnetly very reasonably priced. It is a double bet on both Japan Market and USD/JPY exchange rate. This is based on my bearish view towards USD.
3. Investment is much less fun without small cap. Some new small cap stocks I am watching now are: CECO, NVT, PLT. I still hold NTE (You can still buy NTE if you haven't yet), RICK (quite high now, my friend Jaewoo has a few articles about the stock ), SNHY and SCHN.
p.s. as I mentioned in the last 2 posts, COP is a good buy around $56 - $57. Don't miss the chance when it gets there in the coming 2-4 weeks.
posted by Siyu LI at
12:54 AM
2 Comments:
Siyu:
RICK's last two quarter's EPS was $0.13 and $0.13
It will probably record higher EPS for the next two quarters.
Basically, it is trading near 10X forward earnings.
Do you still think it is high? : )
I personally prefer GDX to GLD if you're bullish on gold. I'm bullish long term, but bearish short term. I think we can get better price during the next two months compared to now.
Let's meet for Dim Sum with your wife soon? Advise.
By
Jaewoo, at October 13, 2006 10:01 PM
RICK, by all measures, is an impressive company. I am downsizing my small cap holdings in the last 2 months, but still hold RICK. (top 3 holdings).
But it needs a rest for short term, and no need to rush in for now, that's what I mean.
let's meet next weekend.
Siyu
By
Siyu LI, at October 13, 2006 10:23 PM
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