Over-Emphasized Inflation Fears Create Another Buying Opportunity
Email – #75
Dear Reader,
Last week, we took advantage of the incredibly oversold natural gas and oil markets and we added Chesapeake Energy (NYSE:CHK) at fire-sale prices.
And we subsequently saw a massive short covering in both markets as we went into options and futures expiration (today and Monday in natural gas), ending comfortably above $7 per [...]
U.S. Treasury Quarterly Refunding Provides A Great Buying Opportunity
Email – #22
Dear Reader,
This week, as expected, we saw a massive short covering in oil and natural gas markets, leading to higher prices.
Our Petrochina (NYSE:PTR) shares and options briefly touched our entry price and are forming a typical “inverted head and shoulders pattern,” a strong technical signal of a bottom.
Today, we learned that China’s economy [...]
Oil and Gas Hold Their Supports, and Chesapeake Thrives
Email – #74
Dear Reader,
Since we saw natural gas fall off a cliff in December, we have been patiently waiting for three weeks to make our entry point. With options expiring today in oil and gas futures and frigid weather turning up for the first time in the Northeast this winter, we finally got some satisfaction.
Chesapeake [...]
U.S. Stocks Correct A Bit, Yet Are Still Cheap
Email – #21
Dear Reader,
This has been quite an active week in terms of news. Will the U.S. markets rollover and bring the other markets down, including our beloved China?
It does not look probable… Let me explain:
To start, stocks are cheap relative to bonds at a 17.5 P/E, when the inverse of the 10-year rate is [...]
The U.S. Soft Landing Is Confirmed, But the Markets Are Responding Negatively
Email – #73
Dear Reader,
Once more, we got retail figures this morning confirming that the U.S. economy is alive and well. This is good news to the high-flying electronics firms, on which we based our Silicon Image (Nasdaq:SIMG) investment. Stay tuned.
In the meantime, oil and natural gas have both fallen off a cliff, on the back [...]
We Add to China GrenTech, China Life, and PetroChina Back at "Sale" Prices.
Email – #20
Dear Reader,
So far, we have been extremely disciplined in China. We have taken profits in:
FXI twice, for 7% and 13.75% gains;
Yanzhou Coal for 14%; and
PetroChina and IShares Malaysia for 21% each.
There is a reason behind such cautiousness: We launched this service in August, with the rally already well under way – and the [...]
Take Profits in GLD, YZC, and FXI
Email – #19
Dear Reader,
First, StreetTracks Gold Shares (NYSE:GLD) hit out trailing stop, so we are going to sell it for only a 5.5% profit.
We are glad that we got out of Petrochina (NYSE:PTR) earlier, avoiding the recent profit-taking.
But we can take the opportunity to sell out of Yanzhou Coal (NYSE:YZC), which has barely budged in [...]
