Birchtree's Account Talk

Re: Birchtree's account talk

"Too often, investors only look at the short and medium term trends in the markets. When we have had a year with exceptionally damaging sub-prime problems, it is time to step back and look at 5+ and 15+ year views. It is only the longer term views that can give you a clear picture of how much damage has been done."

The definition of "short and medium term" can be a very subjective period of time. I agree that 1 year does not define a long term trend over the life cycle of the average investor. I believe the further back one looks for a trendline, the more meaningless that trend becomes. There is a big difference between 5 and 15 year views on a monthly chart. the further back one looks...the bigger that price channel becomes.

I guess we all can be guilty of trying to see what we want in charts when it comes to trying to apply them to our personal time frames.
 
Re: Birchtree's account talk

I was primarily interested in demonstrating the degree of negativism in the financial sector - as perhaps a motivation for my current shopping spree. Click on the link for the demonstration.
 
Re: Birchtree's account talk

Just a side note. Birchtree I figure you would appreciate a work of art. Look what's getting parked in the garage this July: the Aston Martin DBS. I couldn't help myself. $275,000 - 10K over sticker and you can't imagine the favors I had to pull in just to get one. LOL

2008-aston-dbs-13.jpg
 
Re: Birchtree's account talk

Cayman,

She is definitely lovely and I bet she'll purr like a sweetheart. Congratulations - you provide incentive to keep on the march forward.

I went in today when the Dow was down 254 and bought a few positions: ALY, APL, BAC, BBT, BZH, BMS, EBF, LZB, LPX, T.

Second thought, I'll rub three coats of wax on it for free just so I can touch it.
 
Re: Birchtree's account talk

Still doing a little nibbling on the lows: CEM, CSK, FBN, HVT, HBP, SMP, RT, HD. All stuff only I want - no one else thinks they will survive, but I know better. Snort.
 
Re: Birchtree's account talk

OK I'm done buying for the day after these: B, BAM, CX, DHT, FLE, IT, GRA. Only got 51 more purchases to make - will wait for next week to roll around. Good thing I own agriculture - may be forced to peel some of that off later. My ribs are sore from taking the blows today - but this is opportunity time in my book. I'm not afraid of this recession noise that is being bandied about town.
 
Re: Birchtree's account talk

4Q S&P 500 earnings are projected to come in -11%. The financial sector is contributing a -72% share to those earnings. The S&P 500 earning ex-financial shares will show a projected gain of +11% - duh? Why are all these young hedge fund managers so nervous - I say it's inexperience. S&P 500 earnings could actually surprise if exports are strong. I've got some agricultural stocks that are in rally mode - so I may be forced to sacrifice some future profits with them by peeling off shares intermediate term to raise buying power. Folks, there are just so many rejected wall flowers that want harbor in my oceanic portolio. I may be stepping in deep manure but spring is near and the garden needs planting.

Dennis - permabull #1
 
Re: Birchtree's account talk

Why are all these young hedge fund managers so nervous - I say it's inexperience.

Dennis - permabull #1


They're puppies Birch - and they hear all the chattering and get caught up in it. Of course when the markets are diving the press has to project bad news - and when they go up the press will print the upbeat stories. I personally see a short term bounce that will make everyone think "We're out of the woods" and then the ultimate downfall will occur.
 
Re: Birchtree's account talk

I helped a friend with some stock talk today and this is what he bought when the market was standing down 304: KRO, LOW, MAS, NCC, NL, KWR, RF, SLE, SHS, SMP, SVU, TDW, TKR, LTD, LBY, KEY, GGC, AIT, F, BAC. The Technician will be here shortly to suggest I'm doing a pump and dump campaign - no that's pump and then dump. I'm doing all the pumping while someone else is foolishly dumping.
 
Re: Birchtree's account talk

I helped a friend with some stock talk today and this is what he bought when the market was standing down 304: KRO, LOW, MAS, NCC, NL, KWR, RF, SLE, SHS, SMP, SVU, TDW, TKR, LTD, LBY, KEY, GGC, AIT, F, BAC. The Technician will be here shortly to suggest I'm doing a pump and dump campaign - no that's pump and then dump. I'm doing all the pumping while someone else is foolishly dumping.
birch ..i added to my gold pos agin today...i have been buying precious metal funds for 3 years now and my account ha
s gotten huge...you never mention owning any of these.whats your opinion on the precious metals..now hold over 900k in these funds.....only 300k invewstment on my part...whatsyour take since you never mention prec metals?
 
Re: Birchtree's account talk

I've been holding 15 ounces of American Gold (Grant Woods, etc) since the early 1980s. I think I may actually have a small gain at this point. The origfinal plan was to use the coins as gifts for family members but that plan hasn't worked very well. Otherwise I donb't really pay much attention to the precious metals markets - stocks or etf. I can lose plenty of money in other places. For having a diversified portfolio I'm still rather narrow in my choices.
 
Re: Birchtree's account talk

Still doing a little nibbling on the lows: CEM, CSK, FBN, HVT, HBP, SMP, RT, HD. All stuff only I want - no one else thinks they will survive, but I know better. Snort.

Thanks for reminding me. I just added a little to my HD DRiP. Maybe in 30-40 yrs it might be worth somehing. :)
 
Re: Birchtree's account talk

I'm remined that exports jumped at a 16.2% rate in 3Q, more than double 2Q's 7.5% rate, the strongest increase since the fourth quarter of 2003. Also, didn't 4Q GDP come in at 4.9%?

What is required to establish a new sell signal from my perspective for Dow Theory. The DJIA would have to establish a new downtrend (with a lower high and a lower low) and, in the process, penetrate the August intra-day low (12517). It'll be close next week. In the meantime, the DJTA would have to maintain its own primary downtrend. Until those events occur, the bulls will remain in control. I know it sounds silly with the fourth correction now in progress - but the bottom could definitely be near.
 
Re: Birchtree's account talk

The DJIA would have to establish a new downtrend (with a lower high and a lower low) and, in the process, penetrate the August intra-day low (12517).

I could be wrong Dennis, but on my speadsheet I have the DJIA penetrating the August intra-day low on 9 Jan. That day, I have the intraday @
12,502.33-12,737.26.
 
Re: Birchtree's account talk

Actually, looking at Yahoo... they have it at

12,431.53-12,814.97

for 9 Jan.

Do you see anything different anywhere else?
 
Re: Birchtree's account talk

Rod,

You are correct - looking at TWSJ they have the intra-day at 12,501.76. Ah, doesn't make any difference - I'm still not changing my plan. Just one more negative statistic - we've got historical badness about the markets - and for what reason? I'm prepared to do more buying next week.
 
Re: Birchtree's account talk

Rod,

You are correct - looking at TWSJ they have the intra-day at 12,501.76. Ah, doesn't make any difference - I'm still not changing my plan. Just one more negative statistic - we've got historical badness about the markets - and for what reason? I'm prepared to do more buying next week.

Thank you for that clarification.

And yes, there are bargains on the table.
 
Re: Birchtree's account talk

"When fear rules the best opportunities surface; the opposite holds true when Euphoria rules. We are entering a new paradigm where the Feds will no longer be the only ones capable of injecting huge sums of money into these markets; SWF's will soon be the masters in this field."

Check out the section on the utilities and observe the graph.

http://www.[[financialsense.com/fsu/editorials/ti/2008/0111.html
 
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