I took a small position in SODA at the close. SODA came out with earnings today that looked solid, and then proceeded to crash 20 %. The crash took it down precisely to the 38.2 % retracement area, which should provide resistance.
This is purely a trading position and I will exit it if it exhibits further weakness.
Tuesday, November 30, 2010
China Implores its Citizens to Buy Gold
Below is an excerpt from the Market Watch article "China approves Gold Fund of Funds" (http://www.marketwatch.com/story/china-approves-gold-fund-of-funds-2010-11-30):
"China’s securities regulators have given the go ahead for a mutual fund to invest in foreign exchange-traded gold funds, potentially tapping interest among mainland China investors who face negative real interest rates on their bank deposits and want to hedge against inflation."
...
Allowing Chinese investors access to foreign Gold ETFs is but one more way that China is encouraging its citizens to buy Gold.
I believe China is pushing its people towards Gold in an attempt to protect their buying power without undermining their export potential. After all, China's embrace of a weak currency policy, by linking the Yuan to the Dollar, is positive for Chinese exports, but dangerous for a Chinese economy that is becoming increasingly consumer driven. I believe China reasons, and rightly so, that if Chinese citizens keep their savings in Gold, China will be able to leave the Yuan's peg to the dollar in place for longer, without fear of destroying the Chinese people's purchasing power.
In any event, whatever China's impetus for stimulating Gold demand, news of this nature is very bullish for Gold. If you dont have a position in Gold, I would highly recommend taking one now.
"China’s securities regulators have given the go ahead for a mutual fund to invest in foreign exchange-traded gold funds, potentially tapping interest among mainland China investors who face negative real interest rates on their bank deposits and want to hedge against inflation."
...
Allowing Chinese investors access to foreign Gold ETFs is but one more way that China is encouraging its citizens to buy Gold.
I believe China is pushing its people towards Gold in an attempt to protect their buying power without undermining their export potential. After all, China's embrace of a weak currency policy, by linking the Yuan to the Dollar, is positive for Chinese exports, but dangerous for a Chinese economy that is becoming increasingly consumer driven. I believe China reasons, and rightly so, that if Chinese citizens keep their savings in Gold, China will be able to leave the Yuan's peg to the dollar in place for longer, without fear of destroying the Chinese people's purchasing power.
In any event, whatever China's impetus for stimulating Gold demand, news of this nature is very bullish for Gold. If you dont have a position in Gold, I would highly recommend taking one now.
Monday, November 29, 2010
Welcome - Holdings
Welcome,
This is the first post on my new blog, Capital Defense. This blog will be updated daily with relevant news, thoughts, strategies and trades. What makes this blog different from other financial sites is that I will be putting my money where my mouth is, openly sharing what trades I am making (when I make them) and why.
Below is an overview of my holdings. Over the next couple of days I will elaborate on the specific sectors and companies below.
My portfolio has been constructed with an emphasis on 1. Sector Analysis and 2. SIRP (David Rosenberg's concept of Safe Income at a Reasonable Price). I am currently 86 % Long, and 14 % Cash.
Today there are a lot of rumblings underneath the market, quite literally being papered over by the Fed via policies of Quantitative Easing. Should these rumblings become more pronounced I will look to add to my cash position and/or short positions.
Holdings:
Sector: Energy-weight 28 %
Linn Energy (LINE) - weight: 20 %. yield 7 %
Vermilion Energy (VEMTF)-weight 8 %. yield 5 %
Sector: Gold-weight 24 %
Central GoldTrust (GTU)- weight 16 %
Market Vectors Gold Miners (GDX)-weight 8 %
Sector: AMREIT-weight 11 %
Sector: Other -weight 21 %
Atlantic Power (AT)-weight 8 %. yield 8 %
Mosaic Company (MOS)- weight 5 %
Market Vectors Vietnam (VNM)- weight 3 %
Brookfield Infrastructure Partners (BIP)-weight 3 %. yield 5 %
Quadra FNX Mining (QADMF)- weight 2 %
Lynas Corporation (LYSCF)-weight 1 %
This is the first post on my new blog, Capital Defense. This blog will be updated daily with relevant news, thoughts, strategies and trades. What makes this blog different from other financial sites is that I will be putting my money where my mouth is, openly sharing what trades I am making (when I make them) and why.
Below is an overview of my holdings. Over the next couple of days I will elaborate on the specific sectors and companies below.
My portfolio has been constructed with an emphasis on 1. Sector Analysis and 2. SIRP (David Rosenberg's concept of Safe Income at a Reasonable Price). I am currently 86 % Long, and 14 % Cash.
Today there are a lot of rumblings underneath the market, quite literally being papered over by the Fed via policies of Quantitative Easing. Should these rumblings become more pronounced I will look to add to my cash position and/or short positions.
Holdings:
Sector: Energy-weight 28 %
Linn Energy (LINE) - weight: 20 %. yield 7 %
Vermilion Energy (VEMTF)-weight 8 %. yield 5 %
Sector: Gold-weight 24 %
Central GoldTrust (GTU)- weight 16 %
Market Vectors Gold Miners (GDX)-weight 8 %
Sector: AMREIT-weight 11 %
Cypress Sharpridge Investments (CYS)-weight 6 %. yield 18 %
Capstead Mortgage Corporation (CMO)-weight 3 %. yield 9%
Anworth Mortgage Asset Corporations (ANH)-weight 2 %. yield 13 %Sector: Other -weight 21 %
Atlantic Power (AT)-weight 8 %. yield 8 %
Mosaic Company (MOS)- weight 5 %
Market Vectors Vietnam (VNM)- weight 3 %
Brookfield Infrastructure Partners (BIP)-weight 3 %. yield 5 %
Quadra FNX Mining (QADMF)- weight 2 %
Lynas Corporation (LYSCF)-weight 1 %
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