The Shadow Stock Trader
Friday, October 31, 2008
By Horacio Marquez
Email – #28
** The market recovers strongly, lifting all our positions. The weakest recovered the most
Our strategy of redeploying capital is working strongly. Our last purchase in the Spiders is back up. November could continue up strongly, since the liquidation that we expected from the hedge fund community appears to have abated considerably. This is very difficult to judge.
Yet the more than $4 trillion in stimulus that countries around the world have passed is starting to be deployed. And while the US economy and others hit a wall at the end of September, the damage will start being felt in the first quarter. Third-quarter GDP growth came in barely negative, at 0.3%. But fourth-quarter numbers will be much worse. Remember, the market recovers well before the economy does, and that employment is a trailing indicator.
So, with a market totally oversold, inflation well under control, fiscal stimulus starting to be applied and global interest-rate cuts starting very aggressively abroad (just as we expected), we look forward to a continuation of this rally towards the end of the year. After this, we will start seeing what policies are being implemented in coming days by the G7 countries and in the US by the new administration.
Our positions should continue to benefit very strongly. I’m continuing to look for more opportunities to deploy additional capital very soon.
Stay tuned.
Enjoy and Profit,
Horacio Marquez
Current Portfoli
Name: S&P DEP RECEIPTS (AMEX: SPY)
Current Price: $96.80
Comments: Buy
Name: Powershares DB Agriculture Fund (AMEX: DBA)
Current Price: $25.76
Comments: Buy
Name: Oil Services HOLDRs (AMEX: OIH)
Current Price: $98.52
Comments: Buy
Name: Materials Select Sector SPDR (AMEX: XLB)
Current Price: $26.00
Comments: Buy
Name: HealthShares Enabling Technologies (NYSE: HHV)
Current Price: $25.19
Comments: Buy
Name: Energy Select Sector SPDR (AMEX: XLE)
Current Price: $51.40
Comments: Buy
Name: Vanguard Financials ETF (NYSE: VFH)
Current Price: $30.67
Comments: Buy
Market Watch
NASDAQ
1462.11
0.00
SP 500
778.12
0.00
DJIA
7395.70
+178.73
As Of 5:33AM 3/18/2009
Attention Money Map Subscribers!
Money Map Report,
New China Trader
& Money Moves Alert
are now found at www.moneymappress.com
