Dippin'

The market has taken a nice little break from galloping higher. I fortunately sold out of a couple of shorter term positions for 10-27% gains last week. My small caps stocks are holding up well in this, sometimes breaking down below because someone wants out. I'm going to start providing those who want out and are willing to offer around a 5% discount the liquidity they are after.

I've already turned around TSE:GDL from 11 to 11.70 inside two trading days. There is money to be made long here. Try and remember that.

Citi Earnings

I'm not a trader per se but I pay attention to short term action in my stocks. I do this for two reasons:

1) To learn how to profit from timing the market (There is money to be made with timing, especially for small investors)

2) To better understand how the stocks I own and am interested in act given a particular event or move in the overall market.

Let me take you through the price action BAC this morning.

Citi reported a 33 cent loss for the quarter this morning sending US financials lower. My position in Bank of America was down after this announcement about 3% and is now down a little less than 1%.

The recovery in BAC's price is bullish. Investors looked at the dip as a buying opprotunity because they think that, relative to Citi, BAC will report better earnings for the quarter and/or for the year and furtehr in the future. They probably think this because Citi receive's 68% of it's revenue overseas where the recovery hasn't necessarily been as dramatic and Citi is not a large deposit bank like BAC. I am of the same opinion, for those reasons and more.

The point is that long term investors in BAC (such as myself) are waiting for it to distinguish itself by relatively outperforming the likes of Citi and returning to a price range similar to WFC and MS ($25-$35). Of course I haven't a clue as to how soon that will happen.

Stocks

I take a lot of things for granted. I come on this stupid blog I made to smack my keyboard around a bit as well as jot down some ideas I have.

I must have mentioned in the past that I am, thus far, a Long Only investor. I don't talk a lot about my precise returns because exact numbers bore me. That being said, how do you think a Long Only investor has been doing lately?

Just fine, thank you very much.

Commodities

Does anyone know what moves the price of commodities? Did you see what speculation did to the price of oil? How can a commodity be that mispriced and not make you question the intrinsic value of all commodities?

Go get your farmer's almanac and make some money.