Birchtree's Account Talk

[Birchtree]

Another day of weakness and another opportunity to buy golden prices: KOL, LPX, CX. In the summer of 2010 we had a correction of 16% over 10 weeks and I don't believe we'll see anything of that magnitude this month. So my dividends will continue to automatically scoop up more wall flowers and when I get extra cash it'll be spent.

 

[Birchtree]

I really don'y worry about these consolidations and corrections because I've been through so many of them - I know what my future holds and patience will be rewarded with even larger gains and eventually profits. Right now my primary objective is to reinvest my dividends and continue building my income stream. I'll have to wait on my margin availability until sometime later this month - it's going to be a very profitable summer. Snort. The tugboat is going to take care of itself - holding 20C/80I until hell freezes over.

 

[MrBowl]

I think you're right. I'm waiting for another Fed Pres speech (Fisher on Thurs, I think) to buy in at a low point. I think at that point the jobs report on Friday will not matter much, and a new rally will start Friday, and continue the rest of the month. Just my guess.

Fisher spoke last night. The other hawk speaking on Thursday is Plosser from Philly, prior to the opening bell. I think this could move the market down, but my confidense is lower that the market will stay down all day. I still think that the jobs number on Friday won't matter, that Friday will start a new rally.

 

[Birchtree]

I bet we do.

http://www.marketoracle.co.uk/Article-40768.html

 

[Birchtree]

"A move to 1575 is basically only a 7% pullback which is in line with a normal move lower."

http://www.marketoracle.co.uk/Article40777.html

 

[Birchtree]

Let's try this one again - I bet we do.

http://www.marketoracle.co.uk/Article40768.html

 

[Birchtree]

Another interesting day of volatility - the VIX has risen 27% in a week. Is there a panic of fear going on. I just wish I had more money to buy my favorite wall flowers.

 

[Birchtree]

To be fair to the lily padders, there is one positive to sitting in cash during the most disrespected bull market in history and it's this; if you reinvested those money market dividends each month, you will double your money in just 3.200 years. If you show fear in front of Ferdinand he will bury you - no doubt.

 

[Bullitt]

3.2 years in a MM paying .01%? You mean 3,200 years?

VIX rising, but would need around a 100% move to get to mid 2012. I get bullish as it rises.

 

[hotwings]

BT,

I have been accumulating BTU as well, however, it seems this stock only knows reverse. Thank goodness this is in my long term IRA account so time is on my side. My research indicates that once China and India gets their economies back in gear this puppy will double from here.....

I'm taking opportunity of weakness to purchase a couple more wall flowers: BTU, BZH. I also have a bouquet of dividends due today for reinvestment - waiting on June to explode.

 

[Birchtree]

I've been patiently waiting for a +300 point Dow day - perhaps today. The real key to making money in stocks is not to get scared out of them. I will continue to add to my coal positions because my renegade contrarianism requires me to move forward and buy more while they are giving them away. That's how I function. There is a Chinese company in Texas building a coal gasification plant - why? I've posted a number of positive articles on coal and I'm still positive in the midst of gloom - been there many times.

 

[Birchtree]

I should point out that both BTU and KOL are components of my sacrificial lamb chop account and I use them as a storage of cash incase the margin girls call me out. My other coal holdings are long term in nature - I'll be purchasing 1,000 share blocks of them from time to time.

 

[Birchtree]

Hold up there pilgrim. I know I should be dazed and confused like some others - but I'm not. Volatility is simply picking up again and we'll have to adjust. My oceanic did this for the week: +$13K, -$48K, -$82K, +$56K, +$46K for a devaluation of -$15K. I'm still looking for the month of June to be hot, real hot, with some nice gains.

 

[Handballer]

Another interesting day of volatility - the VIX has risen 27% in a week. Is there a panic of fear going on. I just wish I had more money to buy my favorite wall flowers .

How much do you need? I returned from Vegas a couple weeks ago with money in my pockets.

 

[Birchtree]

Friday was the biggest climb since Jan. 2. In January my oceanic logged in +$304K - June may actually accomplish the same thing. Last year January gave me a gain of +$283K and a June gain of +$286K - so I may be headed for a +$300K June this year. They say past performance is not always indicative of future performance but I think June is going to get real hot as money seeks stocks. The Fed is on hold for now but for how long.

 

[Birchtree]

Will Apple provide enough of a positive surprise to set off rockets in flight?

AP survey: Economists see no stock market bubble - Yahoo! Finance

 

[JimmyJoe]

Will Apple provide enough of a positive surprise to set off rockets in flight?

AP survey: Economists see no stock market bubble - Yahoo! Finance

Bonds down, equities up. EOD SPX 1651. I love it when a plan comes together.

 

[Birchtree]

http://www.zacks.com/stock/news/101098/5-reasoins-stocks-will-make-new-highs-if

 

[Birchtree]

All this fear of increased interest rates is just fear - it will happen at some point but not real soon. "The job-market slack is giving workers little leverage in salary negotiations. Average earnings were flat in May versus April, putting them 2% above the year earlier level. Throw in some efficiency gains, and labor costs are exerting next to no upward pressure on inflation. So it could be a while before inflation reaches the Fed's 2% target. The upshot is that for all the recent market talk about how the Fed might soon reduce the $85 billion in Treasurys and mortgages it buys each month, the economy isn't at a point where a majority of the members on the Fed's rate setting committee are going to feel comfortable dialing back on asset purchases. It will take a better job market for that." So relax, enjoy the volatility and buy the dips - I bought some AXLL today. And I have another four dividends kicking in today. So bring on the fear and run that VIX up. I don't care. Snort.

 

[Birchtree]

For that someone that might be interested in what my reinvested dividends look like - there are a few catch ups too: SO, AEP, B, CNP, DNP, MPX, OLN, STR, RES, SE, VMC, BCS, IVZ. Most of these will be reinvested today. Then we'll have a few more tomorrow - it never seems to end especially when building an income stream.