David Brown

Market in Strange Dance with the Dollar

For whatever it's worth I am trying to stay market neutral in equities. The overall market environment is the most complex that I have witnessed. It is much easier to identify strong and weak stocks than to sort out the overall morass of issues effecting the dollar, gold, the equity markets, the debt markets and each ones relationship to each other and more :(


On Nov 18 01:12 PM absolute return guy wrote:

> Great posts by all. I find this site so helpful. Mr. Big, great points
> and I agree that you probably aren't getting trapped anywhere.<br/>
>
> I THINK I am posititioned well for this spike with some short/put
> positions in PALM and others. I wonder if the common consensus is
> to overweight slightly on the short side as an absolute return investor???
> I too believe the market is overbought and that there is an impedding
> spike in the dollar that will send equities falling back to earth.
> But everytime I convince myself of that it goes the opposite way.....so
> I tend to stay completely neutral.
>
> Thoughts?

Market in Strange Dance with the Dollar

Well said. I was trying to point out (in my opinion) the extremely clear inverse correlation that was literally day-to day and indeed my worry that the economy cannot be "off the hook" due to the 10% plus unemployment as well as the continued fragility of our banking system (as noted in my recent blogs). Thanks for the added emphasis.


On Nov 17 07:57 PM Northern Dancer wrote:

> >Over the past several weeks, the market has seemed inversely tied
> to the value of the dollar. The dollar goes down, the market goes
> up; the dollar goes up, the market goes down. Generally speaking,
> the dollar has gone down, and the market has gone up.<
>
> This inverse relationship has been absolutely locked in place since
> November 2005. I hope you're not only noticing it now David.

Four Stock Ideas for This Market

Hi,

Sabrient's chief business is supplying short ideas and portfoilio hedges to major asset managers and hedge funds. As always there is a large number of overvalued companies out there with aggressive accounting or other obvious weaknesses. Some examples would include IVN, PALM, ELOS, WBS, and LAMR. LAMR treated me badly the past 12 months after bottoming at a little over 5. Fortunately I closed most of the position on the way down at nice profits. Hope those give you food for thought. We do publish a weekly piece on Green Faucet that always has 13 LONGS and 13 SHORTS. Investors (H)Edge is the title. A subscription product. Thanks for your comment.

david


On Nov 10 01:14 PM absolute return guy wrote:

> Market is proving as always that I don't have a clue. I will check
> these 4 stocks out. Any thoughts on some weak stocks as well for
> short or puts? I like to be covered on both sides so while I appreciate
> the 4 long ideas it would be nice to get some indication of what
> you consider a weak stock as well.
>
> Thanks for the column.