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I can't say it any louder....Sometimes CASH IS KING....I just think about all the other individual investors out their pushing profits until they turn them into losses....I understand most Americans have no clue about the daily fluctuations in the market, but yet their retirement depends on it....I wonder how many brokers out thier called their clients and advised them to sell, not last week, but on last Thursday(5/11)....I know my sister and my cousins all got my phone call 10 days ago on 5/11.....You readers here got my warning on 5/13(Over the weekend) (2 days after it started), but still 4% ago on major US indexes....

Now how am I playing this market very defensively!!! (with 80% CASH)
 
Russell 2000 is now sitting at 718.47.....My 200 Day Moving Average shows next key support level at 699.00 and historical support around 689 level....If these are broken on strong sell side volume I would not be a buyer of US stocks for some time...

We are oversold on all short term indicators, but with that in mind I still feel like we will have one more down leg (could be a few days/weeks), before we bounce...I have heard corrections come in threes....Meaning three down legs....Some could argue that we are still in the 1st leg, but I have a feeling we are in the second if not the third leg of this correction.....

$COSTAverageMAN
 

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Well when India goes I guess Brazil has to fall as well....

If you are long this market I hope it's in Airlines, Drugs, Healthcare, Chicken, Tankers or game makers....

This is a brutal market....I don't know how anyone is making money with a diversified portfolio....I have over 600 stocks on my screens waiting for some sign of life and 95% are in the red and most are down over 3%....

Just sitting back and waiting to enter.....I may be waiting for some time

Portfolio is now at 87% Cash....

Some recent sector purchases that are in the green are healthcare, selected chemicals, Drugs, tankers and chicken
 
Just posting a Brazil chart!!!!

OUCH.....

Just think of all the people who were late to the emerging markets....

35899 is where the index is at currently...Down from a high of 42000

India same story...
 

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I am posting this statement for any of you younger/novice investors that may come across this post.....

1st Markets will always be rising and falling, don't get discouraged and never take on risk (Margin) you can't handle..

2nd Your still relatively young and will have ample opportunities to make your millions going long the many diversified sectors/positions in the future

3rd Remember protection....It is a small price to pay to have insurance on your portfolio....You never know when weeks like this are looming...You insure your Car, House, Medical Expenses, and your Life....Why not your portfolio....

4th Remember CASH IS KING

5th When times look tough step back and re-evaluate .....Remember it is he that is holding the paper that can experience the fruits and the pain!!!!

6th Cut your losses early if the market resembles any steep sell off from a previous short term high.


I am just like all of you.... sitting behind my computer screens saddened by the recent events in this market, but still optimistic about the future of the global stock markets....I don't see today as the day I reload my equities, but soon valuations will be back to earth and new high fling sectors will emerge and the game will begin again.....Stay Strong and be wise, the markets will eventually rise.....Watch for head fake corrections to the upside and be careful calling bottoms on the hottest sectors...I have already made this mistake more than last this week.

I will be a buyer of equities when we have two green days in a row and at least one of those must be a 15 point move on the S&P 500...Until then 87%CASH and my 10+% DIV Yields from my tankers and FDG and PWI.....Eat more Chicken...(PPC, TSN, SAFM, GKIS, IBA).....Check them out...very good valuation report on TSN got the whole sector moving and they have all been beaten down by the relatively recent bird flu reporting (Which has been around for over 3 years now)....Be the contrarian!!!!

$COSTAverageMAN
 
Risk Taker

Don't get me wrong...I understand completely that the shorts are swimming in MONEY right now....I just recently made a vast fortune on my protective puts on OIH, QQQQ, and IWM (Bought on 5/5 when the Implied volatility was close to nil)....This was done as a hedge for 100% equity position, but by the time the market were in free fall I had already liquidated to around 80% CASH....:D :D :D

I made the statement suggesting that it would be very difficult to put together a long equity portfolio that was in the green after the past eight market days...

$COSTAverageMAN
 
Did some dollar costing on some losers.....

Bought CCJ@35.62 (5:1 Dollar costing from 38.20 purchase---Showing good strength loaded up)

Bought CLF@71.05 (3:1 Dollar costing from 82.24 purchase---Just bringing down the cost)

Bought CME@430.65 (2:1 Dollar costing from $458.50 purchase--A Bull day is needed in exchanges)

Bought NDAQ@30.35 (4:1 Dollar costing from $36 purchase)

Bought BOT@87.01 (4:1 Dollar costing from 94.10 purchase)

Bought PTR @102.70 (2:1 Dollar costing from $116 purchase)

(Not a DOLLAR COST)(Not a DOLLAR COST)(Not a DOLLAR COST)

Bought SSL@36.30 (My alternative energy play)

Bought NYX@60.80 (Buying on Merger Weakness)

Bought SHI@47.04 (I feel it's oversold and will bounce soon)

Bought HAL@69.52 (Oil bounce)

Bought CWPC.ob @5.61 (Started loading back up before it goes to the AMEX)

Bought GMR @31.64 (Yield is close to 18%.....Shippers showing strength)
 
Bought GROW@18.93 (Oversold today)

Bought GGB @13.04 (Brazil Steel)(Can you think of a more overheated combination.....It is down over 35% in a short period)

Bought TNT @80.84 (Russia Oil)(Can you think of a more overheated combination.....It is down over 25% in a short period)

Bought PTF @21.44 (Canadian Oil trust ) (Getting bought out and a steel at this level)

I will regret all these purchases today, but the market needs people like me to be optimistic and start calling bottoms and buying stocks.....Well see if we bounce soon!!!!.....If not oh well....
 
Just seeing some small reversals...Not seeing anything to get excited about, but worth putting some money to work...OIH stocks just ramped in the last hour.....
 
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