Trade Alert: Reviewing the playbook and adding to a wet one
Good morning and welcome back to the recording studio, where the loops don’t always repeat from one verse to the next.
Patience. Buying in tranches, instead of drawing a line in the sand with each trade. Flipping the headlines and conventional wisdom on its head to find the contrarian ground. Finding the political economic outcomes that today’s policies will produce.
This has been and will continue to be the playbook and while I tell you guys that I’ve got no silver bullet, we’ve had a heckuva a lot of success over the years.
On Monday I wrote:
I won’t deploy all my capital yet, but I’m going to step up and do some buying today in the following names:
I’ll add to my common stock in each of them for now and I’ll also bid on some out-of-the-money calls in Apple and Sandisk. So I’ll bid for some Apple calls with strike prices near $600 that will expire in January and I’ll bid for some Sandisk calls with strike prices near $40 that expire out in January of 2014 — more than 18 months away.
Obviously, with AAPL up some $40 or so from where it was trading when I wrote that, I’m not about to buy more of it here now. Sandisk’s also up since I wrote that while FIO and LVLT are both down this morning bringing them back to about where they were when I wrote that. So the point is that with the markets up since Monday’s opening when I was stepping in to buy more and with the stocks either up or flat with where I was doing my most recent tranche buying — I’m not likely to be rushing anything one way or the other today. Patience, see?
Other things of note this morning — The water wars are heating up as I’ve been predicting for you guys:
Ohio Senate passes water-use bill easily; Gov. John Kasich will sign it
Read the article for some facts and then read the comments such as these below it:
Yes Governor, go ahead and sign this bill. You wont be around when Lake Erie and its tributaries dry up and die in the years to come. Who is going to regulate the usage. Can anyone imagine how many loopholes businesses will employ to shirt any law on usage. What stupidity this is. Personally, i don’t care what political party is involved in this, this is business driven and it will only come to the death of our water and eco-systems that are tied to the waterways. UNBELIEVABLE- UNMITIGATED GREED AT WORK
This is just a bill designed to help the fracking industry take all the water they need out of our streams and rivers to help make northeast ohio a FRACKING WASTELAND! Oh my god we need cheap oil so we become less dependant on foriegn oil! How about using the technology we have on the shelves to make automobiles get 150 miles per gallon instead of raping the countryside!!
As I noted above, finding the political economic outcomes that today’s policies will produce is one of the keys to long-term investment success. Water demand is skyrocketing as water supplies are dwindling and the Republican/Democrat Regimers in power are creating policies that will exacerbate both the supply and demand issues. I’m going to nibble on some more Lindsay LNN common stock as I build the position up.
And don’t forget today’s chat at 2pm EST at http://tradingwithcody.com/Chat where you can ask me anything.
