Wednesday, March 27, 2013

The Dips Have Been Bought, Again.

US Economics were bearish last night, but the markets move higher.  After the market was stirred but not shaken last week, the market is showing signs for another run higher.  I am now holding only long positions, with bonds, GLD, GDX and US dollar as my proxy defensive position.

US Economic Data:
Durable Orders: 5.7%, 5% exp.
Confidence: 59.7, v 66.9 exp
New Home Sales: 411k, 426k exp

INTC (long position)
Intel +3% was a strong bid among the blue-chips on reports it was close to entering the pay-TV market with a set-top box of its own.

A good article on the summary of Buffet's deal with Goldman Sachs in the GFC.  I don't agree with the thesis of the author about 'Ham Sandwich' operators, but it's a good reminder of the great deals an investor can gain during market turmoil and liquidity problems for financial companies.  The author fails to mention the sophisticated financial links Warren buffet has to the financial sector; and being an investor versed in finance; it's not surprising that the companies that violate the 'ham sandwich' rule are the ones that are aligned with Buffet's own expertise.

Definitely sums up how I feel about equities right now, you have to be invested, but it feels very uncomfortable to be invested.