Since I last wrote, I took long positions in BNI Burlington Northern, and WFR MEMC Electronics. I sold the Nov 80 puts on BNI and the Nov 60 puts on WFR. I went long after the earnings reports.
Mark Hulbert in his Marketwatch column reports that only 7.7% of market timers that he tracks are bullish. This is a contrary indicator, and Hulbert interprets it as extremely bullish. The market rarely tumbles when so many timers are so cautious.
Also in the news, gold reaches a new recovery high. My thinking is that this current run is 90% currency driven. The huge fish from the currency markets are eating up the big fish in the gold market (the commercials with short positions), allowing the small fish in the gold pond (the speculators) to enjoy this bull run. Enjoy it while the currency fish are running amok.
Positions: all hedged longs: GM, BNI, WFR
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