The Day After

Although the Fed did not do my bidding exactly, it was close enough and gave us clear signals that Battleship Ben will continue to shell the bears with vigor. And yesterday's stock market explosion up certainly impaled a few bears. Aw shucks.

Interestingly, based on closing prices the S&P printed a higher low and higher high. The ratio of NYSE up/down volme was a spectacular 20x and for the Nazz that ratio was a still spectacular 12x. So now we have a cluster of two bullish up/down volume ratio days. These technical signals must be viewed cautiously as ETF and program trading distort them. Still, both these days occured on days when bullish fundamental news occured. So good news is now ... good.

GE smashed through its 50 DMA [DMA = "day moving average"] on higher volume and also broke its intermediate term down trend line. I have a large position in GE that now shows a fine profit. That stock is still greatly undervalued in my humble opinion.

Still, one must be cautious as the wounded bears are still out there and will attack again. Buy only on decent dips ... let the bears give you a good price. be patient and use time diversification.

I made the last large gold sale yesterday before the Fed meeting (!) and got a fine price; I also made the last silver sale at a good price, too. My Krypto Fund is now down to its minimum 5% gold+silver asset allocation from a high of 15%. I really am greatly pleased how this diversification has worked. Even though it worked for me in the past, when it does such in rough times like the present, the peace of mind and opportunities those asset classes provide is quite valuable.

I wrote about a month ago how I thought this will end [see blog post of Fedruary 26, 2008]. And it's my opinion that the end of the end to these problems are here in reality, but perception needs to catch up. This bottom should consolidate now into a bullish continuation pattern.

I'm very, very long in both Alpha Fund [a bit under 200% on margin now] and Krypto Fund [39% US stocks, 26% International stocks, 20% real estate, 10% fixed income (illiquid), 5% gold+silver], but I have reserves if needed and will receive fresh cash this spring.

Words of the Day

"Mien" - noun [$10] pronounced same as "mean"
Mien means [ hehe ;-) ] 1. bearing or manner, especialy as it reaveals a satte of mind; 2. an appearance or aspect.
Sentence: In his interview on Babblevision last week, the mien projected by Alan Schwartz, the CEO of Bear, Stearns, was not sufficently confident to assure counterparties of its creditworthiness.

"Educe" - verb, transitive [$10] (I have trouble remembering this 'duce word)
Educe means 1. to bring out or develop from latent or potential existence; elicit; 2. infer, elicit a principle or number from data.
Sentence: When will more investors educe the turnaround from the extant signs and data in the market and Fed actions ?

"Evince" - verb, transitive [$10]
Evince means 1. indicate, to make evident; 2. show that one has (a quality)
Sentence: Statistics from Iraq evince success from the troop surge in stabilizing security in troubled nation. But one wonders why it took W so many years to do what McCain knew from the beginning ?