Birchtree's Account Talk

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Birchtree said:
I have dividends due every trading day through the end of the month - so for sure bring on the pain, the more the better. This consolidation is an opportunity because dividends are for eternity. All my dividends currently are being reinvested to buy more golden shares and increase my income levels. I've made a lot of money since the March '09 bottom and plan to make much more in the next ten years - staying bullish all the way. I just wish I could get some margin buying power but will probably have to wait until July.
Click to expand...

Win - Win :nuts:
 
Whew that consolidation felt good and refreshing - I appreciate all those scare tactics because it means the bull will continue to even higher highs and not everyone will participate. The danger in volatile markets lies not just in the volatility itself, but also in how investors react to it. However quickly or often it happens, stock prices will continue to go up and down this year. Investors who diversify their portfolios broadly and hew to a strategy designed for long term success, will likely weather those ups and downs with less angst, and likely less loss, than those who attempt to time the market's inevitable gyrations. Market volatility may not be unavoidable, but it is usually manageable. A properly allocated portfolio doesn't need to be rejiggered everytime the weather changes.
 
I have three dividends due today: GXP, HD and KRO. Next week I have a total of 38 dividends due and I'll be happy to take what ever the market throws in my direction. Now this could be scary - the final hard down phase of the 40 year and 60 year Kress cycles are upon us in 2013 and 2014. I'm well positioned to just keep my dividend income working the beat - getting as many golden wall flowers as possible. I'm still in the 1700-1800 SPX camp before year end.
 
that's good because i was starting to worry jimmyjoe and frcknweld were might be gettin lonely up there.
 
BT
respect your opinion- what do you think of the chart in Toms commentary that shows recent S&P matching the '87 chart pre-crash?
thanks E
 
I actually have no opinion on the chart - it's speculation. My oceanic didn't fair well this week: +$26K, +$50K, -$73K, -$146K, -$14K for a give back of -$157K. All I can say about the -353 point consolidation is that the fast selling velocity that spooked traders is not characteristic of young bear markets starting. Instead it is a bull market correction phenomenon. I suspect we'll see a massive wave of panic buying in the near future as Treasury yields continue to spike. Money is getting ready to flow into equities in a big way. I bet corporate profits will continue to exceed all prior records pushing the Dow into further uncharted territory.
 
Money is like the tides - flowing in and out and then back again. With higher Treasury rates wanting to push 3% the great rotation has begun and will take years to complete. I'm staying strong and will ride this down cycle because capital gains will fluctuate but income remains constant. I've got many dividends due the rest of this month and the whole year that will do the heavy lifting and continue to build my income stream. So bring the pain and wash my back - it's all healthy.
 
Birchtree said:
I actually have no opinion on the chart - it's speculation. My oceanic didn't fair well this week: +$26K, +$50K, -$73K, -$146K, -$14K for a give back of -$157K. All I can say about the -353 point consolidation is that the fast selling velocity that spooked traders is not characteristic of young bear markets starting. Instead it is a bull market correction phenomenon. I suspect we'll see a massive wave of panic buying in the near future as Treasury yields continue to spike. Money is getting ready to flow into equities in a big way. I bet corporate profits will continue to exceed all prior records pushing the Dow into further uncharted territory.
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How do you know that money is getting ready to flow into equities?
 
It's simply a matter of using some common sense - money will flow into equities for the longer term. There is always going to be something to panic the hedge funds and cause them to react emotionally and sell their shareholders down the drain - no wonder so many of them have been behild the profit curve. This drama too shall pass.
 
Ferdinand you got the cluckers on the run - just when they should be buying they're on the run - good work.
 
Ferdinand what the heck are you doing - we don't want this market to rebound just yet. You know I'm waiting to gather golden prices. C'mon slam it back down to where the prices are being given away - it's an opportunity that may not come again until 2014. So many very fine wall flowers and so few dollars - gimme margin power.
 
Birchtree said:
Ferdinand what the heck are you doing - we don't want this market to rebound just yet. You know I'm waiting to gather golden prices. C'mon slam it back down to where the prices are being given away - it's an opportunity that may not come again until 2014. So many very fine wall flowers and so few dollars - gimme margin power.
Click to expand...

So, which do you want? Margin power or lower prices because you can't have both...
 
I'll gladly take margin power any time because it leads to cash as well as buying power - the flexability of margin is what I want. I'm going to have to wait now until sometime in July before margin opens up - until then it's dividend reinvestment to the rescue. I could take capital gains but I'm making the sacrifice not to inorder to keep my AGI lower this year to avoid some taxes and help with step ups. Once margin opens up there will be no holding me back and I'll leveage up as much as I can get away with and buy anything that moves in either direction. I'm still very bullish for momentum the rest of the year and beyond.
 
It's a good time to run toward the gold trade in preparation for next year - just nibble as you go. Yes, Virginia there will be a return of inflation.
 
An all out bull rally is not totally out of the question. To see multiple strongly positive breath days is a sign that there is a lot of money standing in line waiting to get through the door. Be the rare rational investor and you will be rewarded.
 
If you are hoofhearted and you got your investing mindset right then market panic events such as last week are not times to panic, but rather a time to stock up on higher yields courtesy of lower stock prices of between 5% and above compared to where they were barely a few weeks ago. I'm adding to my risk curve mostly everyday with my dividend reinvestments - always buying now while wall flowers are golden if I want to levitate to the $3M level. This market is headed for a blast off - perhaps today while the R2K is strong.
 
It certainly could have been worse but next week it will be better - here is how my oceanic acted: -$102K, +$78K, +$32K, +$62K, -$19K for a gain of +$51K. For the month I'm out -$173K but still ahead +$492K year to date. It's a lot better than last year so I still have a good shot at taking down +$1M for the whole year. Last year in the second half I cleared +$485K and actually gave up -$27K for July. We'll see how July treats me this time around with QE still pumping life into the system.
 
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