Market themes

  • Markets next big theme will be upcoming earnings season. Expect many stocks to start creeping up in anticipation of good earnings.
  • Brokers/ retail seems to be the developing theme. Every single retail group is experiencing money flow.
  • Tobacco may not be injurious to your portfolio.
  • The long written off Radio sector may be gearing up for some sound action. Number of other media sectors are stirring up as well.
  • The technicians are discovering Google ( GOOG) now after 35 point rally. But they can not agree on whether it is coiling, forming quadruple top, hitting resistance, has falling wedge, or it has a cup with double handle. It is good that I am not a technician.
  • The Apple share fans think I am an idiot, part of the naked short selling conspiracy, Microsoft fan etc etc. The largest number of hate mail I have received so far for the post-Apple may be ready for a fall. The housing stocks long was the previous record.


PDM1010 said...

I enjoy reading your blogs. Very imformative. I have sorta two quick questions for you, 1. How do you feel about stock options in general, 1.a. how do you feel about selling out of the money puts for income for large cap liquid stocks that may otherwise meet your buying criteria for such stocks (for income purposes.) I know that you have written previously about only wanting to short very liquid stocks. And finally 2, do you follow the normal stock analysts viewpoints on valuations. Thanks for reading this and peace.

Pradeep Bonde said...

1 I am not a major option trader. So I may not be he best person to answer that. I am learning about it currently.
I do not necessarily buy large cap stocks. I look at large cap stock which have made more than 300% move in two years as high probability shorts as that kind of growth is not sustainable in general.So they tend to mean revert.
2 No I do not look at valuation.