We have spoken how we want to see the generals broken to believe in any intermediate rally - the generals of late have been technology, China, and healthcare. Yesterday technology and healthcare took big hits (but technology is of course everyone's favorite again today)... healthcare however was simply destroyed by Obama - especially the managed care companies. So another safe haven to hide out smoked out. We have some smaller niche healthcare stocks and even they are getting hit. This is one mean President.
I don't know what is going on at EZCORP (EZPW) but I assume something in the budget is aiming at cash advance stores. The stock was pole axed yesterday and again this morning - we had a smallish position on the long side - so I am adding to it today. Nothing major. I should of kept my hedge on here on the short side - the chart is a complete disaster.
Even defense is being hit as it appears the budget proposals are so enormous there is fear that SOMETHING will need to be cut and defense seems an obvious item. AeroVironment (AVAV) has fallen to its 200 day moving average ($31.80s) so I am adding to the position there. The problem with adding to a chart like AeroVironment (AVAV) is what today sits right at the 200 day moving average can tomorrow break through. So while I am ADDING today, if it slices through like hot butter I will cut back and take near term losses to save from potential bigger losses down the road.
Last, I added to First National Financial (FNF) and will be building a quite large position here - the stock is down to its 50 day moving average - $16.40s.
If S&P 741 does not hold at the end of the day today, we are headed to the Great Depression of the stock market :) This will be one of the more important closes of the bear market in my opinion.
Again, we are ULTIMATELY heading lower in my opinion as the market is very expensive - I'm making the first "unhedged" moves in a few months - actually betting on a direction. If I'm wrong I'll reverse course and it will probably cost a percent of return.
For now, I am selling Kool Aid... buy stocks ;)
(I'll post charts of the above when I have time later in the day)
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