In our ongoing portfolio commentary, beginning with last Monday’s alert, we’ll first finish up on the holdings, charts and spreadsheets all updated on the website.
Principal Financial Group (PFG)
We think one of the best run of the insurance giants, a quiet giant.
Buy. 25% trailing stop loss.
MTN Group Ltd (MTNOY)
For fun feel free to do your own due diligence on this newly recommended international telecommunications trade.
Buy, using a 25% trailing stop loss
Oracle (ORCL)
This is a long-term speculative trade; we think is the best positioned in the tech field,
as the sector shifts . Long term we believe we have the right stock.
Buy. 25% trailing stop loss
Johnson and Johnson (JNJ)
As soon as we bought in all the news was announced on bad product, packaging, and the brand name of all time became tarnished. We saw the initial recommendation decline 11%, and as we had said “buy, buy, buy”, we bought again at lows and will continue to. A strong dividend and brand name that will overcome this quickly, and bounce back.
Long term speculative hold, using a 25% trailing stop loss.
Panera Bread (PNRA)
When we sold slimy YUM Brands recently for 60% plus profits, and knowing we already held the slime of slime, McDonalds, Panera Bread charts as a break out stock, and is a superbly run restaurant chain.
Buy as a speculative position, using a 25% trailing stop loss
National Fuel Group (NFG)
This is also a new long-term speculative purchase. It’s another method of distribution of core commodities, and worth your review.
Buy. Accumulate. 25% trailing stop loss, in a speculative portfolio.
Monsanto (MON)
The next sector growth play we think is in “soft commodities”, which in the agricultural world means chemicals, pesticides, potash, and shit.
Monsanto has hit a real bottom, with its patent rights gone on its moneymaker pesticide this year, but sells many things, and performs many services.
We bought MON and have continued to recommend within decline, and are now about 3% off .
Accumulate. 25% trailing stop loss
Our recent recommendation on a call on Mosaic MOS SEP 18 2010 45.00 CALL
were spot on. Investors required the second larger buy on this position but hit 34% profits over a week ago.
As we recommend options, remember-SELL at your risk level. For some a 34% return is superb, and for others, they will hold closer to expiry and follow the charts.
The only other sector not covered in our portfolio takes a unique conversation.
We have owned, and do own TIP, the government inflation bond, and we have played TLT calls regularly reaping 35% returns in days with no losses.
Both TLT and TIP remain sound investments long term, to just hold and buy, and short term, to trade on the momentum as these currencies shift with and against the EURO and GLD and SLV
We remain active in review of AIG and TOY. We would like to buy QABA below $20.00My comments will be in bold black, and are to lead you to more questions and answers.
The first step in trading is the identification of personality type, your core “character logy”.
The next step is to let your subconscious just open a bit to your conscious, by taking honesty in, and not “I want or “make up” stories to yourself about whom you are.
From Charles Nenner Research, the Netherlands stock prophet that used to analyze for Goldman . He spoke on CNBC last Wednesday.
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“The Blue cycle line that signaled the prior highs and lows is topping again
This is the reason that we exited long positions when the S&P reached 1200
The very long Red cycle that bottomed in 1990 is now turning down
It bottoms only around the year 2025
This is the reason that we expect a continuation of the overall bear market for many years, with several up moves along the way”
We must recognize that Nenner uses algorithms and cycles to foresee the market and is probably best predicting what we already know. We’re phucked.
Here's what the stock chartists tell us about the massive drop:
-- STOCKS MOVE SHARPLY LOWER TO AFFIRM RESISTANCE ZONES
-- BREADTH INDICATORS REMAIN BEARISH OVERALL
-- RISING EURO WEIGHS ON GOLD
-- GOLD BREAKS WEDGE SUPPORT
-- VOLATILITY INDICES TEST IMPORTANT SUPPORT ZONES
-- ELLIOTT WAVE COUNT SHOWS THE S&P 500 IN WAVE 4
AN ALTERNATIVE ABC CORRECTION AND SUMMER RALLY
At Blue Chip Options we are not considering 25 year periods, but do recognize and believe there will be far fewer “stocks” to invest in that “win”, and that the market will take years to sort itself out of what it did, and what those behind it continue to do.
At Blue Chip Options I've been recommending watching Gold and Silver for months, and we sold our position at 1170. We've just re-entered with Gold and Silver and will watch this. We may have entered too early and that we have more downside to surprise us.
We believe we will have an alternative ABC correction and a summer rally. Our bullishness is short term, but truly there. We see more upside before downside short-term, and more downside than upside long term (6 months).
Friday was indeed a feeding frenzy of downside, lightened by Apple hitting the stages at 1 pm. and telling the world that only 165,000 have complained out of 3 million sold, that all smart phones do this, and that we have created frenzy.
People want Apple to fail, because Apple is successful. People always want to find fault with success.
I own this product and watched with amazement at what a feeding frenzy it has become, when almost every Smartphone has the same problem, and suddenly this is “news”. Lobbyists played Apple, or the human psyche did…..upset that a company could seemingly do “no wrong”.
We’re bullish on Apple and own AAPL OCT 16 2010 290.00 CALL.
We are also bullish on the right Blue Chips, which are bargain priced.
Accumulate IBM, ORACLE, MON, MOS, and any blue chip that is bargain priced.
We will close our weekly commentary with two new recommendations.
1. -BP101016C36
BP OCT 16 2010 36.00 CALL
Buy at up to market. Best buy at 4.85 or less.
Hold and accumulate on any large market dips.
Use a stop loss of $31.00 and sell to 49.00
This is only for high-risk traders
2. Buy Google. (GOOG) Complete our vision. We own ORCL, AAPL, AMZN (both in calls) and think that Google has not lost a bit of its focus, just a bit of attention has softened its profile.
Barron’s this week surprised me with this being their primary recommendation. They are in good company with old Floyd, who recommends it as a core holding using a 25% trailing stop loss.
Buy at market and accumulate.
We will watch for a call on GOOG in the near future.
Here’s partly why. Viral marketing is our future, and GOOG will lead in the producer of the product, AAPL in the display, and ORCL in being ORCL
Here’s the first genius viral marketing:
http://blog.entrepreneur.com/2010/07/lessons-from-the-old-spice-man.ph
Do no harm. Question authority. Question all facts. Do not trust people that want to force their beliefs on you. Be Well.
