Summary:
Gave back last weeks gains of about 2.5%. I had hoped this week would put me in plus terrritory but it was not to be and now I’m down about 4.5% for the year. SNEN dropped despite its positive earnings report on 2/15. NRF and ALSWF also fell.
I was a bit constricted in my trading by the puts I sold over the last two weeks. Seems these count against buying power, which is already low since my Canadian and pink sheet investments have 100% margin requirments. Not that I plan to use margin, but seems that I can’t use all of the cash I have in the account.
To raise cash I sold the remains of my DHT and reduced ONAV. I spent some of the proceeds on more NRF and SNEN. I also opened positions in two gold miners, EPM.CA (I bought the warrants EPMWF), and MEAOF. The former has a mine in Kazakhstan. There is country risk, which is why it seems cheap relative to its prospects. Metanor is a junior which is just entering production. Both of these are recommendations of knowledgeable posters. I also covered my LEN short after news of Ambac bailout. I don’t think were out of the woods yet and expect homebuilders to fall more, but I lightened and will reload. I think its important to trim positions when things move in the right direction and the short-term outlook changes.
Positions:
Long: ACY AHR ALSWF ANH CHNG DSSPF EPMWF FFHL GA GREXF MDNNF MEAOF MLKKF MMG NLY NRF OCNF ONAV QADMF QMAR SGTI SNEN XSI.
Short: GCI KBH LEN MEG MNI PHM TOL WM.
Options Long:
Calls Short: NRF Jun 12.5 calls; KBH Apr 35 calls.
Puts Short: NRF Mar 7.5, Jun 7.5; KBH Apr 15; ANH Jul 10; WM Mar 12; MFA Jul 10.
Cash: 4.5%
Short Pct: 12.3%
Read:
Stocks Researched:
Positions most worried about: .
Positions most sanguine about:
Biggest market worries: recession spreading beyond US
Thinking about:
Outlook ( up-flat-down surety rating: 1-5 reasoning):
US: flat-down, 2.0; credit woes.
Tech: ??
Japan: not invested – don’t care anymore.
China: up, 3.0; strong economy.
Silver: up s/t, 2.0, price action; l/t up, 1.0, industrial demand.
Gold: up s/t, 2.0, price action; l/t up, 1.0, industrial demand, GFMS study, US$ weakness.
Copper: flat-down, 2.0. China, but stocks rising.
Zinc: flat, 2.0. Stocks stabilizing.
Real life: working on projects and busy social life.
Weekly sleep and exercise: have been having some heel pain, probably planar fascitis so been biking but no soccer or boxing. Sleep fairly regular.
Mood: calm, good
