Since May 5, I have been slowly buying back the positions I sold in April, and covering my shorts. Now back to 100% invested, so any further buys will be on margin. Have bought, or orders to buy: INTC at 22 and down, QCOM at 36, ASML at 31 and down, KLIC at 7.5 and down, BP at 47, more FAN at 12 and down, FSLR (long this time) at 125 and 100, thinking about GSK at 34. SNY at 30$ is seriously undervalued.
Overall, I am hesitantly bullish. SPY and SOX held at their 200dma earlier this month. We may get another test this week, which I expect will hold. The world is not going to come to an end, because Greece borrowed too much. The Gulf of Mexico is not going to be covered in an oil slick. All paper currency is not going to become worthless. At least not this year, and maybe not next year; not sure after that.
U.S. Bond Sales Rise as Contagion Concern Fades bloomberg.com
Housing Starts Jump, Wholesale Prices Decrease bloomberg.com
Wal-Mart Stores Inc., the world’s largest retailer, said first-quarter profit increased 10 percent as growth in Mexico, Canada and China helped make up for sales declines at U.S. stores. bloomberg.com
(I listened to a variety of conference calls this earnings season, and they all powerfully reinforced my belief that increasing profits, for any company in any industry, will not be coming from the U.S., Europe, or Japan. This is true for semis, car companies, pharma, alternative energy. Everything.)
Capital inflows into China accelerated to $95.9 billion in the first quarter of the year... online.wsj.com
New York manufacturers stepped up hiring over the past month to a pace not seen since 2004 online.wsj.com
The bull market is intact, for now. Since the March 2009 lows, we've had 3 pullbacks, each of about 10% (June/July 2009, January/February 2010, and currently; I'm ignoring the May 6 data.). My general method, will be to sell in small increments when we hit new highs, and buy in increments beginning at 10% pullbacks.
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