Tim Admits that He Sucks at Trading
It comes as no surprise that Tim Knight the putz from slopeofhope.com has finally admitted that he sucks at trading. Today he wrote in his most recent entry;
(2) My ability to trade them is horrible; in spite of me sharp eye for rallies, I tend to buy calls, get scared at the first inkling of trouble, sell the calls at a tiny profit, and “fight the market” all the way up, getting trashed all the way.
There you go; an irrefutable admission of noobness. I knew this all along though, when I wrote months ago that slopeofhope.com is overrated. This quote further validates the fact that slopeofhope.com like Jim Cramer’s Fast Money doesn’t actually help its readers make money in the stock market, and that the buy and hold methodology outlined on iamned.com is much more effective than day trading.
Even funnier and more pathetic, when going long on RUT2K calls Tim still can’t make money:
What happened to Chart Your Way To Profits? More like Chart your Way to Losses. That would be a more apt title for Tim’s blog since that is what he seems to be good at.
With Ned’s buy and hold strategy there is far more upside, no work (besides logging on to your online broker and placing a buy order), and much less risk of blowing up your account, which occurs quite often with options. So far, my picks are up on average of twenty percent in 2008 while the broad markets are DOWN over ten percent. Such winners include EWZ, GOOG, KOL, MA, MOS, and Visa.
No funny log charts, no zig zags, no shade ins, just $$$.
Coal is the Dotcom Equvilent of the 21st Century
I hiiiiighly recommend coal stocks. I am beating myself up for not noticing this sooner. Why dammit so angry I didn’t get in on this in March. Oh well, it’s still not too late to buy coal stocks.
Coal is the next water and oxygen in terms of human consumption.
3rd world countries without stringent air standards use substituting Oil for coal. With regards to alternative energy, coal provides much more output than wind and solar and is safer than nuclear. India, Russia South America, and China can burn as much coal as they want without impunity. There is no Environmental Protection Agency or leftist pressure groups in China or India to regulate carbon emissions. And as oil continues to surge higher, so will coal. In fact, the price of coal has doubled this year, and nevertheless the demand shows no sign of slowing.
You simply can’t fail buying coal. Buying coal stocks now is like buying Cisco or Oracle stock in 1992 or Yahoo or Amazon stock in 1997.
Buy these stocks ans ETF’s and make money for virtually no work:
KOL (a coal etf will see 70 within 1/2 year or so)
PCX (looks over extended but IT WILL go higher on any pullback I guarantee)
WLT, BTU
Meanwhile, the broader indexes are making new lows while coal stocks are making weekly highs consistently.
For a full list of stocks you should buy, check out my feature; Stocks for the New Era Part 2
S&P 500 Still Not in Bear Market Territory
With all the doom and gloom from the pro-Obama democrats and other losers you would think we were already in a bear market, but we aren’t. The S&P 500 has yet to close below 1252, which is exactly twenty percent below the record high of 1565 made in October of 2007. Unless the S&P 500 closes below 1252 it simply isn’t a bear market. The stock market almanacs and mainstream media won’t call it a bear market unless the S&P 500 closes below 1252. Otherwise it is just a correction, albeit a steep one.
Why does the S&P 500 refuse to close below 1252 in spite of all the doom and gloom? The reason is because there are still so many strong sectors that are propping up the market. Energy stocks are making record highs as are commodity stocks. Steel, potash, iron, coal, and machinery stocks keep making new highs. Meanwhile large cap tech companies like RIMM and AAPL are holding their own. Visa and Mastercard, two stocks which I have recommended for awhile, are just ten percent off record highs. You can’t have a bear market when there are so many stocks and sectors showing such huge strength. In a true bear market virtually every sector gets obliterated, but this just isn’t the case. Amazingly enough, if you remove financial companies from the S&P 500 the index is only down eleven percent from its high, which is evidence of the broad strength of the market.
We’re also still in the new era of globalism, consumerism, spendism, smartism, and hyper capitalism. The global economic boom is far from over. Boom economies of India, Brazil, Russia, and China need raw materials which is why oil, coal, potash, and metal stocks keep going higher.
The boo hoo hoo Obama democrats claim we’re in a credit crunch and a liquidity crisis and that the American consumer is ‘tapped out’, but this couldn’t be further form the truth. The only credit crunch is an imaginary, leftist media generated one. If people didn’t have access to credit why would Visa and Mastercard stock keep going up? Americans have access to huge credit in the from of credit cards and home loans, and Americans will continue to max out their credit cards to pay for food and gas, which is good for Visa and Mastercard stock. In fact, visa stock closed above $82 last Friday, up 36 percent since I recommend it.
On a final note, Barry Rithholtz from bigpicture is wrong again, as usual. Today he wrote how the S&P 500 from June 1999 to June 2008 has done nothing. Um yeah except he is forgetting that the S&P index doesn’t include dividends. Had you invested in the S&P 500 on June 1999 and held you would actually be ahead by nearly twenty percent if you include the dividends. A twenty percent return is actually pretty good considering June 1999 was nearly the peak of the last bull market. It is no surprise that none of his loyal readers point out that obvious omission since it would invalidate his argument, and possibly hurt his feelings.
Offshore Drilling Will Save McCain Campaign
Recent polls have shown that up to two thirds of Americans support offshore drilling. It doesn’t matter to voters if it will take years for the oil to come on line or that the quantity of oil is small. At least McCain is offering a solution to rising oil and gas, and that is what voters what. Voters do support a gas tax holiday contrary to what the Obama lefties claim. Voters don’t care about the environment; environmentalism has never resonated with middle class, hard-working voters.
The McCain campaign has already unveiled a series of energy policies in the past two weeks under what is being called “The Lexington Project??? to achieve energy independence by 2025.
The plan includes proposals ranging from lifting the ban on domestic offshore drilling exploration to creating a $300 million prize for the creation of a zero-emissions car battery.
Ads regarding his energy plan will air nationally on cable, and in Colorado, Iowa, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Mexico, Ohio, Pennsylvania, and Wisconsin.
What energy plans have Obama proposed? None. While Obama is busy calling people bitter and shopping for Arugula at Whole Foods, McCain is conversing directly with the American people through his town hall meetings offering solutions for the problems Americans face.