Cash is king but got to put it to work. Citigroup earnings were not a non-event after all. The financial messes tore down sentiments all over the market. But I got an opportunity to buy LEH at 60 today. I am lookin forward to 65 again. This got easy again.
VCLK- the risky play served out the risk today as it lowered its revenue estimates. The stock got slammed to 24.5 on the open. And I ran for cover. Will buy it back if at all it goes to 20. If VCLK was hot as it was a potential buyout candidate, a lower revenue estimate and the resultant drop in share price would only bring the suitors more closer to a deal... is my thinking. But the market shoots first and analyzes later... so its too risky to hold.
We put the cash in LEH for now. Financials are down a lot on the same news... so they are safer. Says who? I know am going against the herd... who think staying away from financials is the way to go. Well time will tell.
Amazon looks like done going up but tis time to watch .... and be wary. The worst time to trade is ahead of the earnings... as sometimes they can take all your gains away in a day. Take a look at Ericsson - its down 20% (10 bucks ) this morning on a profit warning. Warned you, be in cash didn't I? The same cash buys more shares when they get hammered so bad.
Once the market absorbs the shocks - maybe a couple of hundred more points to go on the downside we will be close to the next FED meeting. And once that is absorbed whats to stop the year end rally? Who knows. I am more concerned about today... and what we can do to make the most of the moves... Stay tuned...
Lets meet after YHOO and INTEL report today. Buyer beware... look for stellar comments from the conference calls, aint happenin if a slowdown is lurking. So once again cash is king.
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