Summary of Jan, 09

Up 22 pts or 40%! What a month! Shorting contributed most gains that tells us the downtrend still intact. Follow the trend.

Another new feature

From this year, I am going to have a monthly summery of my newsletter recommendations. If I have more time, I will also make 08's picks a list too. You decide if my newsletter is worth of your money.

KSS

I am also shorting KSS in my fund.

TJX

Also shorted TJX.

SHLD

I added SHLD last night.

Nice start

My fund's YTD performance is 18.8% while S&P 500 is -8.57%, the worst January on record for the market, a nice start of a new year for my investors. If you are a believer of "January effect", not a good sign for 09, which coincides our economic recovery won't take place as most people have wished.

Now I know

MA's strength is attributed to pre-mkt addition to Goldman's Conviction Buy List that is bullshit too.

MA and V

I wonder why MA and V are so strong today. I know V was added to Deutsche Bank short term trading list as a long, which is a bullshit to me. I think this is a short opportunity.

Retailers are weak

I am shorting retailers across the board.

NASDAQ disappoints again?

Yesterday's low is violated, which certainly disappoints the bulls once again. Oh well, this is one of the characteristics of a bear market. There will be plenty of false signals before the market really reverses.

One day makes difference

I covered one day earlier.

VRTX

My VRTX is rallying against the market.

NVEC

I added it to my newsletter last night.

My short term target

With the financial names so beaten down, the market can rally to 1600 area without a sweat.

More upside

My bullishness from 2 days ago is paying off. Just like I said, the financial sector holds the key. I think we have more upside, it is not over yet.

Also this one

Lucky

I am glad to escape this one with a small loss.

Removing old trading record

I removed the "old trading record from 05", since it is way too old.

New poll

Please cast your vote to the right!

Weak close

The market closed in green, but a lot less than when I left. I am certainly dissapointed, but let me spin it this way: one day does not make a trend, the bulls still get a chance.

My guess

I think we will close higher today! Why? Look at the European markets.

It feels good this morning

As soon as the banks are not getting killed, the market gets lift. I am buying more this morning and now net long.

Educational sector

Educational sector is getting sold this morning, I think it is a good opportunity to get in. As always, don't forget the stop. Sorry, forgot to remind you: DV is going to report tomorrow. So don't bet a farm on it.

Baidu's interesting appearence on CCTV

CCTV's Spring Festival Gala has been a must-see program for the Chinese people for the last 26 years. All the major companies try to place some sort of commercial tonight at CCTV, the sole TV station broadcasting this special event. It is like Super Bowel for the Americans. One of the major sponsors is Baidu tonight, not only because of its commercial appearance, but also its CEO Robin Li showed up in the front rows of guests and was under the flash light. This is interesting since Baidu was just under investigation by a CCTV's program less than a month ago. Baidu apologized for its wrong business conducting and its stock price responded negatively. So what does tonight imply? CCTV has stopped the investigation after it got huge chunk of money from Baidu? There must be some money deal behind the curtain. At least that is what my impression is after tonight. Should not CCTV avoid Baidu due to conflict of interests? Oh well, I guess not, because it is in China.

Happy Chinese new year!

This year is a bull. I wish we will have a bull market. Oh well, I know it is difficult, but I do hope everybody here will have a bull performance!

Foreigners can buy apartment in BJ

The new policy that tries to stimulate the real estate market in Beijing is allowing foreigners to own residential properties. Since 2007 in order to prevent the rapid rising price, foreigners have been heavily restricted to buy apartments.

I am covering

The banks stop bleeding. If that is the case, I think the decline may be closer to an end.

Update: GERN

Up 40% in 3 days! I am selling half today.

Another 20% cut?

Nouriel Roubini, who correctly predicted last year’s financial crisis now calling another 20% downside on S&P. The reason? Slowing China.

FSYS

Added to my newsletter two days ago.

New gadget!

Add a "follow" feature on the right! If you like what I have done here, please press "follow" button:)

GERN

GERN was added to my newsletter couple of days ago.

MSFT missed!

In my memory, MSFT never missed its earning and laid off people (correct me if I am wrong), even in the old days when the bubble was burst. Missed 2 cents and cut 5000 workers!

Update: ESI

ESI reported earning this morning and beat it handily. It is trading at $123 this morning. Oh well, I dare not hold through earning, particularily in a bear market.

Strong close

Surprisingly strong close, I will become bullish if we can close above 1511.

Update: ESI

Stopped out for $16 gain.

Fading

The market is quickly fading. I repeat, the market is not oversold and it has long way to reach oversold area. I think we are on the way to test November low or even lower.

Some thoughts about picking a bottom

At Realmoney, Jim Cramer is picking on Warren Buffet, saying Mr. Buffet is down 50% on GS, GE. A lesson we as small investors should all remember: NEVER pick a bottom! Even a great investor like Warren Buffet can't time the market. Maybe he picked the extreme of the fear, but the price has not hit the exact bottom. The price tends to lag or overshoot.

AMR is killing airlines

You can tell it is so hard to be long in a bear market. Last week airlines still looked ready to break out, today it got killed by AMR, which missed its earning big time.

Rally to last?

I just used this rally to unload my longs and reload my shorts. I don't think the market has changed over night.

Still true

It looks like my comment from a week ago still valid.

NDSN

I also added NDSN to my newsletter.

EQIX

I shorted EQIX two days ago.

Update: SOHU

Covered SOHU for 10% gain.

Banks are still the key

The banks are still holding the key to a better market. They have to stop bleeding first. If they do, I would jump in drug and biotech related sector, airlines, and educational sector.

Update: VMI

Target met and profit taken for $10 in 4 days!

Wow, can't believe my eyes

$15 in 3 days!

Update: WYNN

Closing position for more than $10 in 4 days!

AAPL is dead

Without Steve Jobs, AAPL's growth story is over. This is the bad news for AAPL, I think investors will flee tomorrow.

Maybe early

I know I may be way early, but I am starting to cover today. I remain bearish, will reload the shorts after some bounces.

Nortel filed bankrupt

Once a high flyer Nortel filed bankrupt today. It reminds me the good old time and how long I have been in this business.

Look out below

With the financial sector is again under pressure, I don't think we can see a sustainable rally. I would use any strength to get out long positions and initiate shorts. And I don't see any reasoning that the market being lifted, except oversold condition, which is long way from where we stand now. Actually we are overbought.

WYNN

WYNN was added too.

VMI

VMI was also added last night.

SOHU

I added SOHU last night.

QQQQ

It looks like the party is over.

Shit

Got shaken out yesterday.

JBLU

Sold today for 26% gain!

Testing support

The NASDAQ is testing the suppport, the XOI (oil service index) is also testing the support. The pullback was expected, but not by this large.

First buy signal since August

Don't know how long it will last and how valid it is.