Wednesday, November 28, 2007

Bookkeeping: Morning Transactions

I am going on the continued thesis that bounces need to be sold, so I will be cutting back this AM on some of the largest positions in the fund, along with some of those moving the best.

Stocks with large weightings I cut back: Mosaic (MOS), CF Industries (CF), Potash (POT), Foster Wheeler (FWLT)

Stocks that have large moves this AM I am cutting back: Massey Energy (MEE), Consol Energy (CNX), Blue Coat Systems (BCSI), Suntech Power (STP)

Stocks I added to: Best Buy (BBY) as it broke above $49.50 which was the level I wanted to see it burst through to add more. [On the Buying List: Best Buy]

Note, the above names are among my favorites - none of the sells are huge amounts, simply trimming into strength. It is nice to see when the market actually goes up these stocks go up with some strength. I'll continue to monitor the S&P 1440 level. If we can hold and continue upward this would be a change in character near term in the market. Won't know until late in the day. Obviously if the market continues up from here (long overdue) these stocks will be not be ones you'd wish to be selling off any of the position but until the pattern breaks you have to assume it continues.

If you are playing at home, I'd expect the most washed out, speculative stuff to rise the most if we are indeed in a short term rally (finally). This is a good opportunity to see what sectors are moving and what will outperform once the market gets its footing... so when the next sell off happens, you redeploy into those sectors - it looks like coal and agriculture are doing very well.

On the good news front, Wells Fargo (WFC) announced losses, and Freddie Mac (FRE) announces a cut in divided and need to issue equity but the market is finally ignoring bad news. Reason? Fed members say Fed must nimble and hints to cutting rate. (shocker!) Been saying this since minutes after last Fed cut and I continue to believe we will be in mid 3% range by mid Spring as we bail out a suffering financial system. But I suppose this is a 'surprise' to the experts...

Long all above in fund; long Blue Coat Systems, Foster Wheeler, Mosaic, Suntech Power in personal account

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