Which Way Wednesday – Happy Crashiversary!

Posted on the 09 March 2011 by Phil's Stock World @philstockworld

The Hang Seng has also pulled back about 20% since November but everyone else is catching up with even the Shangai bouncing while the Hang Seng consolidates.  Our 100% lines on the US indexes are 12,938 on the Dow, 1,333 on the S&P, 2,530 on the Nasdaq, 8,362 on the NYSE and 684 on the Russell.  The Russell is our leader, up 140% in two years (which is REALLY good for the RUT $390 Index calls we bought back on crash day for just $10!) and the Nasdaq is up 119% off their 1,265 low but we liked buying AMZN at $62.50 better than risking the basket of the index at the time and that too has worked out well with AMZN now $167 (up 167% coincidentally).  

We were already in AAPL and GOOG etc – the usual suspects as we had gone bullish the week before the crash in March of 2009 – all the crash did was flash a big SALE sign at us while we were already at the mall with cash to spend.  Most of my picks on that actual day were financials:  SKF shorts, FAS longs, XLF long, RKH long, BAC long (at $3.14!) and then some staples like GE, DIS, TGT and HOV (at 0.65!) along with the Russell, which was our "index most likely to succeed" selection.

So you can’t blame us for hoping we have another nice correction – especially with values currently so stretched.  We don’t want to be bearish but, when there’s nothing to buy you either stay in cash or get a little short and, as much as we liked AMZN at $62.50, we have