We got lucky as we timed the finance sector bottom, at least for the time being. BUYING Citigroup below 30 when others were yawning, was profitable. Better still, gettin into FNM and FRE (Fannie Mae and Freddie Mac) yesterday at 29.50 and 31.7 - was excellent timing. Both are up almost 4 bucks today. WM, Washington Mutual at 17.5- was a steal yesterday- its trading at 20 today. What happened? Fed SPOKE and he spoke for a rate cut- and more- thats what the interpretation of his terminology says.
Meanwhile technology is down- is it the Dell effect? To my mind Dell's earnings should be a non-event. ITs out of favor with the consumer. If Hewlett or Apple stumbled on their numbers would run for the gates. So technology is a BUY- am holding onto all my tech names. OVTI - the company that provides camera sensor chips for mobiles raised its guidance for the next quarter and the stock was up to 20 in early trading but is down to 18 and change. It looks good so am buying some here for a quick trade. As technology picks up for the year end hallelujah... this one will run up. The Indian infotech giant, INFOSYS is just about beginning its bounce. We are in at 39 and 41...! The currency effect of a strong rupee seems to be discounted. A targt of 50 seems do-able, I will take 49!
Homebuilders are up from the bottom. Finally someone noticed the falling knife is on the floor and picked it up. To my mind holding onto our KBH and DHI will be worthwhile. ALL the possible negativity is in there. Bargain hunters will rush to buy once the fed eases and finance becomes so to say cheaper.
I bought some puts on XOM as oil looks like going down from here but XOM is still strong at 89 or so. Some January $80 puts at a buck a piece look good for a trade if oil begins its sojourn to $85 next week. The crystal ball is crystal clear so far- and I am happy to bring the right trades at the right time... Hope you benefit as much as I do.
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