BooksAndStocks

Sell Silver Stocks

2012-01-22T11:23:00.000-08:00

With the Dow getting close to 12,800 we are at an intermediate stock market top, and institutions will soon be taking profits. The European debt situation will also jump to the news headlines in the next two months, and this will send the stock market down again. Another factor in selling silver stocks now is the chart of silver futures at Barchart.com on the futures performance page.

I am planning to sell the leveraged silver ETF, AGQ, on Monday morning. I will be banking a profit of around 17% for being in the stock for less than two weeks. If you can make 17% every two weeks, you could be rich in a short amount of time. Unfortunately, it is not that easy. You are not always able to buy low, and everyone also makes losing trades sometimes.

I believe the long term trend for silver is up, but it will go down whenever the general stock market declines. I plan to buy AGQ again when it drops to $46 per share.

Going back to the futures chart at Barchart.com, this is a great website to monitor whether you should be in or out of commodities or VIX (volatility) stocks. Silver is still positive in the charts, but it has dropped some. It needs to be sold while it is still positive. If you will notice VIX at the bottom of the futures chart page, it has gotten less negative just since Friday. This is the time to buy TVIX, a volatility ETN which tries to leverage whatever VIX is doing on CBOE. I believe that volatility will be rising again soon, and TVIX will be a winner probably during the next month or longer.

Buy Cheniere Energy

2012-01-15T11:40:00.000-08:00

You could have made almost 100% in capital gains if you had bought Cheniere Energy (ticker symbol CQP) a year ago. On top of that, you would have made 8% in dividend payments. I am one of the people who has owned Cheniere in the past, but I did not hold on this past year to reap the big monetary gain.

Conditions at Cheniere changed tremendously in the fall of 2011. They picked up three big contracts worth billions of dollars. They can easily stay in business and do great now. I am buying the company again the next time the stock market opens. The company price may not immediately rise higher, but you will be paid over 8% to wait. I also think that Cheniere could double in price in the next two to three years. This will be a lot more than you can make in a stock market that is only drifting slowly higher.

The Great Crash Ahead

2012-01-08T14:29:00.000-08:00

Harry S. Dent has written a fascinating book on the economy and the stock market entitled The Great Crash Ahead. The book contains numerous charts and tables to explain why the stock market is heading down in the years ahead. The era of easy money is over, and society will never go that way again.

The stimulus plans have failed. On page 239 of the book, the author suggests that the Dow could fall to 5600 by 2014. This is a bitter pill to swallow, but it is more realistic than you might initially think. The baby boomers are retiring, and they will not be putting additional money on the line in a dubious stock market. They will also be selling their investments and using the cash for their retirements. In addition to individual cash-outs, the U.S. government will have plenty of financial problems along with the European nations. These factors will lead to many down days in the stock market. The best way to play this scenario is to buy a volatility index like TVIX for around $25 and sell it at $50. This pattern will also be repeatable for years to come.

2012 Stock Market Strategy

2011-12-31T10:49:00.000-08:00

This past year was very disappointing in the stock market. Historically, it should have been a good year because it was the third year of the presidential cycle when the stock market usually does well. However, the debt problems here in the U.S. and Europe got to the point where they could no longer be ignored. 2012 will be another treacherous year in which the stock market will go nowhere. Since we still have the debt problems, there will be many down days where an investor could make a profit by shorting the stock market or by going long with a volatility index.

In this context, the bulls will also be exerting force in the new year because people are always adding money to their 401K plans in one way or another. Money does not sit idle. Those who have it will be seeking to make more money from investing although it will be a mistake on their part because the gains will be small, and profits must be taken quickly. Since this is an election year, the Republicans will add more fuel to the bull fire since it will be perceived that they can do a better job than the Democrats.

The net result in all of this is another volatile year in the stock market where the spread between the highs and lows will be large. TVIX, the double volatility index ETF, is the best way to play the 2012 scenario. If you can buy TVIX for less than $35 per share, there will probably be a dozen times in the coming months when you will be able to make a profit of 10% of more on stock market down days when volatility will spike. Be certain to take profits when you are up, though, because the bulls will always come up with a story of some kind to keep the stock market alive. I currently own TVIX and I have a buy order to purchase more at $28. It is certainly possible that TVIX may fall into the low 20s, but I will buy more there also. Eventually, I expect to win big on TVIX this year just like a friend of mine who made 200% for his money on TVIX in 2011.

ATP Oil and Gas

2011-12-27T20:30:00.000-08:00

ATPG has a lot of oil and gas in the Gulf of Mexico that they will be able to monetize sometime in the future. This company is probably worth $20 or better. If we have trouble getting oil from the Middle East due to Iran, ATP Oil and Gas may be catapulted in price by 200% sooner rather than later.

The company has been trading in a range near $6 to slightly over $7. You could accumulate the stock whenever it drops near $6, and if you want to trade it out at $7.15, you would make 16% on your money during each cycle. It might be worth holding onto a core amount of stock for whenever it moves toward $20 per share, though.

Investing Strategy

2011-12-04T06:52:00.000-08:00

We are living in a dangerous investing world due to several factors. We have the financial problems of Europe as well as the U.S., we have high unemployment, and we have a bad housing market. Certainly we have seen some improvement recently in these situations, but we have a long way to go before a bull market in stocks can be declared.

Essentially, we are in a bear market, and the only way to succeed is through short term trades. Also, since sometimes the bottom is not clear on certain stocks, it is a good idea to enter trades with multiple buys rather than going all in when the stock could drop further. A classic example of this is GMCR, Green Mountain Coffee Roasters. It looked like the stock had formed a bottom in the first part of November 2011 when the price looked stable in the mid $60 range. They had already fallen around 40% from their annual high of over $100. However, when they narrowly missed earnings, the stock price fell off a cliff all the way down to $42 per share. If you had bought all your shares at $67, you would have experienced a devastating 37% loss in a day's time. If you had only bought $1000 worth of GMCR at $67, you could have bought the rest of your shares after it dropped to $42, and when the stock went back to $56 by December 2, you would have made a substantial profit instead of a big loss.

If you have a moderate portfolio of $50,000 and you limit your buys to $1000 initially, you will only be risking 2% of your portfolio until you see how the stock is going to perform. This small trade amount will also allow for significant diversification to add more safety. Then, if you can make $200 on most of the $1000 trades, those 20% gains throughout the year will probably amount to doubling your portfolio money each year!

Post Thanksgiving Stock Market

2011-11-27T16:08:00.000-08:00

Europe's financial demise in 2011 came to a pinnacle in the fall when Greece and Italy were both forced to appoint new government leaders. As of Thanksgiving, there was no sign of any quick solution, and the stock market was down for the week due to weak German bond sales. There is no way to tell how far stocks will fall in the week after Thanksgiving. The pullback may be done.

I sold my position in TVIX, the double volatility index, on Friday for $62 and change. I made a small profit since I got in at around $53. My reason for leaving the trade now is that TVIX has struggled over the past month when it has gone over $60 per share several times. My guess is that the Europeans will find another band-aid to patch up their financial problems. This will result in a possible Santa Claus rally in stocks, but the advance will be small since the European situation is not yet fully resolved.

On the long side, I bought shares of ERX, the triple oil ETF, on Friday for around $37. It is possible that the stock could go lower, but I believe it will return to more than $50 per share in just a few weeks or less. I plan to sell my shares at the limit price of $51. This is based on the fact that ERX has gone over $50 per share several times in the past month.

Two other long stocks that I plan to buy on Monday are PEIX, Pacific Ethanol, and RIO, Rio Tinto. Pacific Ethanol has doubled in the past month, and insiders have been buying the stock. Rio Tinto is one of the world's largest miners, and they have a single digit PE. They will eventually be worth twice the current $46 per share.

Miracle Cures

2011-10-09T11:01:00.000-07:00

Jean Carper has written a fascinating book called Miracle Cures. The book discusses more than a dozen cures through over-the-counter supplements. For example, a lady who had a weak heart that could barely pump blood was saved by taking 300 milligrams of Coenzyme Q10 per day. COQ10 improves heart pumping as well as overall body energy.

Another healing supplement is selenium. A 1996 study showed that taking 200 milligrams per day for seven years reduced the occurrence of cancer in a group of 1300 people. Selenium had the greatest influence against prostate cancer. It also reduced colon and rectum cancer by more than 60 percent.

Arthritis was another condition the author talked about. One lady thought she would need a hip replaced, and she chose natural supplements instead. She took chondroiton, glucosamine, and manganese for two years, and she was able to play tennis again. She could also walk five or six miles without pain.

Bear Market Signs

2011-10-09T10:39:00.000-07:00

Several fundamental economic indicators would point to a stock market heading toward bear territory or at least a situation where stocks will not gain very much at all.

1. High unemployment.

2. The Fed interest rates are already around zero and the economy is slow.

3. Housing starts and sales are not going anywhere.

4. A deadlocked Congress where money is not being spent to create jobs.

5. Shortfalls in IRS collections caused by a lot of people who are not working.

6. Foreign bad news because the world is now a global economy.

7. The summer and fall seasons are especially susceptible to market drops.

If you see any or all of the above signs, it might be a good idea to sit on the sidelines until conditions improve. Another possibility is to buy bond funds like JNK and RCS which pay around 8% or better annually, and you get a portion of the dividend each month.

Arthritis Cure

2011-10-08T09:01:00.000-07:00

The Arthritis Cure by Jason Theodosakis, MD, is a great book for finding out what you can do for an arthritis problem. Studies have shown that glucosamine and chondroiton are two of the best supplements for rebuilding cartilage and for arthritis relief. Unfortunately, not all supplements are high quality.

The author tells which companies make the best supplements. He also tells the approximate dose size to take for beneficial effects. For example, you need to take 800 to 1200 milligrams of chondroiton each day. This supplement is also the best one for helping you, but it is even better if you take it with glucosamine, too. I highly recommend this book for everyone.

Buying Stocks

2011-10-08T08:46:00.000-07:00

The worst time to buy stocks is at a stock market top. This is not the case in October of 2011. During the first week of October, the S&P 500 actually slid into official bear market territory briefly. Then, a big rally took place for three days. Whether the market has really turned around or not, you can probably eventually make money through buying stocks now. We cannot predict the exact bottom or top of the market, but buying near the bottom is worthwhile.

If you want to play it safe, you can buy an ETF stock rather than individual companies. For example, ERX is a triple energy stock ETF that basically goes up 3% for every 1% rise in oil. The fund owns several large oil companies. If you believe that oil will eventually rise, this is the stock for you. 100% gains can be made also if you buy it near the true bottom.

Blogging Content

2009-12-20T10:16:00.000-08:00

Where would you get blogging content, and how would you get paid for blogging? A tips article is one idea. Maybe you know something that other people don't know, or you have seen something interesting on the internet. You could easily write a couple of paragraphs or more about it.

Other ideas include fact or fiction stories, personal experiences, facts about something, or recommendation articles.

A few places to write for money are Blogger.com, FreeLanceHomeWriters, and PayPerPost.

Linux Books and Websites

2009-12-19T18:49:00.000-08:00

LinuxBooks4You.com is an interesting website that discusses Linux books and other Linux information links. One book review on the site talks about the popular Ubuntu form of Linux. Another page talks about PC Magazine's book on the different versions of Linux. Then, there is a page with links to other Linux websites where you might want to go if you need to download a version of Linux software for testing or using.

Linux has gone a long way in becoming a cheap and friendly operating system alternative to Windows. The above website is a good place to start learning about the possibilities of open source software that is easy to use.

Flat Market

2009-12-06T08:06:00.000-08:00

According to the latest Conference Board report on leading economic indicators, the economy will be rather flat going into 2010. This means that most stocks will be going nowhere in the near future. The best place to be is probably in high dividend stocks. One company that investors should buy is American Capital, ticker symbol, AGNC. They have paid a dividend of more than 20% for all of 2009. To find more stock picks and analysis, go to ClusterGains.com.

Introduction

2009-11-29T16:15:00.000-08:00

This blog will be about interesting books to read and promising stocks to buy in the stock market. For example, computers are very important in our lives nowadays even if we are not programmers. One useful website that discusses computer books is www.computerbooks4you.com. The website just started, but many books will be discussed there as time goes on.

The other focus of this blog is about stocks. A good website for a lot of great stock picks is www.clustergains.com. The website also has important links to many of the stocks as well as useful information on major indexes, ETFs, and market economics.