Monday, August 12, 2013

Aug 13, 2013 update

 Jim Chanos notes that more stocks are trading above three times book value today than at the 2000 market peak......  But over valuations can last longer than we expect.

It looks like we should see a short term bottom this week:




2013 chart with data thru July:


Best guess - short term bottom set (short term top around Aug 20-21):


Posted by at

5 comments:

  1. DoctraderAugust 13, 2013 at 10:22 AM

    Inlet,

    I keep reading the comments from the posters on the Keystone Speculator. Most are Elliot Wave-type people. It is sort of funny to read how they keep changing their mind as to what is happening. They are short one minute--then long the next.
    Overall, the general opinion there is that because this is OPEX week, there will be a final thrust higher--perhaps 1710 range. Then the market will fall.
    My own opinion is that we will get this thrust higher. I am thinking of adding to my RWM should that happen.
    You still have some RWM?

    ReplyDelete
  2. InletAugust 13, 2013 at 12:17 PM

    Unfortunately I still have some RWM (underwater) that goes down faster than I can recoup the downside selling covered calls.

    ReplyDelete
  3. DoctraderAugust 13, 2013 at 2:24 PM

    I'm underwater too with a small position, but I thought I would double down if the situation seemed right. Not sure if it will unfold though,...not much volatility last few days.

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  4. InletAugust 15, 2013 at 11:17 AM

    Position in RWM - starting to see some green....

    ReplyDelete
  5. DoctraderAugust 16, 2013 at 6:47 AM

    I never got that chance to add above 1700,...just never went back up.
    Keystone tends to feel that the markets will head lower, but might "back kiss" the 1685 level. So, might add there.

    ReplyDelete

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