QE3 QE3 QE3 QE3
| Recent Top 5 Positions | |||
| Ticker | Position | Sell Date | Return |
| ALJ | Long | 2/14 | +49.8% |
| ECTE | Long | 4/14 | +35.2% |
| JOEZ | Long | 4/11 | +42.2% |
| HILL | Long | 1/31 | +55.5% |
| AXK | Long | 5/31 | +30.2% |
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I continue to view the action of the past couple days as consolidation. And until 1301 is taken by the bears I firmly expect new highs in all market indices.
Yesterday the minutes of the last FOMC meeting were released and QE3 was on the agenda. While nothing formal was announced by the FOMC, the group claimed to be open to another round of easing if warranted by slow economic growth and mild employment growth.
Let me set the record straight, QE3 would be a cataclysmic event for the long term economic health of the nation, but the stock market, and commodity market, would love it in the near term.
Call me a jerk, but I love it when Bill Gross loses. As a person he's probably a great guy; and in his investor reports he often references classic rock bands, which is cool. But I don't trust a thing he says when he posts in WSJ or interviews with CNBC.
I was highly critical of the bond legend when he claimed the run in treasuries was over and he advised the public to sell your position in February and March. In fact when Bill Gross, of Pimco, went short bonds I took the opposite trade. And I went long TLT, with the premise that bonds looked ready to rally and the market appeared poised to consolidate. Additionally, I am generally skeptical when big managers come public with controversial trades.
Only four months later, "the Bond King" completely pulled a 180 and is bullish on U.S. debt again. Bill Gross manages enormous amounts of money. When we buy or sell the market hardly notices, but it might take Bill Gross years to enter a full position since he is buying billions worth at a time. The fact that he's flipped positions in such a short time is evidence of the fear in the investment world (be it sovereign debt, China, recession, employment) and dollar based assets are still king when times are tough.
Currently the the TradeMaster portfolio is positioned long, and I intend to keep it that way. But if earnings reports begin to disappoint investors and economic data continues to be tepid I will recommend to cash-out and go short.
The indices were up in Asia and flat in Europe today. As I mentioned yesterday, I think the selling is overdone, and I would expect a gain today from the U.S. indices.
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