Gee, this volatility (http://finance.yahoo.com/echarts?s=%5EGSPC#symbol=%5EGSPC;range=1d) is getting to be almost boring. I don’t pretend to be a technician but it does appear that the market is trying to bottom out around 800-850 on the S&P.
I was fortunate enough to catch some high quality names closer to the low than the high today, and some of that is reflected in my marketocracy funds. Some examples include SBUX with an 8-handle, GE at $15 and change and AEO at 8.75, which contributed to my 8.77% gain, compared to the 6-7% gains on the index. The short fund took a hit as to be expected, but only lost 2.4%, and remains up 60% YTD.
Many solid stocks continue to trade at valuations that assume rather extreme events like near-term 30%+ declines in revenues, 20 year growth of 0% etc, and with volatility continuing like this, I recommend setting hard (greedy) limits and seeing what sticks. I’m going to see if I can post my watch list for my long-only fund on the side.
Filed under: General Investing
