Top of the Curve

4/15/2005 Market

GE posts much better than expected however that is about it in terms of good news. Im looking to see moeny start to roll in defensive positions namely pharma and heathcare, thinking calls here would be a good idea in MRK and PFE but they have been on a tear last 2 days. Have seen some short covering in GM and will buy puts if it gets around 29.5 level again. Housing market looking weak still short anything like TOL.

• Continue market short SPY (115.77 right now). Why buy anything?
  
• Buy more gold (426.5 this position has been hurting me but i buy weakness) See other factors involved in dollar bear rally like Euro constitution meeting which would love to see weaker Euro. China is going to revalue Yuan before end of '06 at which point dollar gets smoked. Also change to oil for euros instead of dollar.
  
• Buy oil/nat gas here 50.51/7.005. At worst oil comes down to 45
  
• Continue TOL short right now around 77. "Rental market improving" if you want a house u have it by now. Dump the second house!
  

posted by BKo @ 5:56 AM