Berkshire increased yet again its position in BNI. Raising its stake to 14-15%. Some sparkel in BNI has caught berkshire’s eye (yes I am not only an engineer and a trader, but a poet too 
), maybe it is the PE of 16.3 for a company that should be trading with a PE of 19-20.
I feel like I sound like a broken record
Due to work, I am up near the Boston area for the time being. Because of this I am unable to access my real time streamer… hence part of my ‘proprietary trading’ technique. (See how great the term Proprietary Trading sounds, mean while it is just me observing carefully selected real time tickers whose movements give me an idea as to what the indexes will do before the indexes do it. )
So most of my posts will come in the PM upon review of my second set of Propietary Trading Technique… aka a review of my over 200 charts I follow.
Also, upon my return from holiday, I have been aggressively applying for Trader positions and using this blog as my only real showchase of proof toward being a good trader, and actually know what I am doing in the world of finance. The reason I say this is because my anonymity is slowly dwindling away with every CV I write, and in short order will mostlikely no longer post anonymously (pictures and all).
I am more interested how this will affect the markets tomorrow. (Granted this may mean less of a buy back for HD, but the majority will get done.)
When reading the report, the terms sounded like HD threw in everything but the kitchen sink to get the deal done. They garuanteed debt, took a 12% stake and sold it for $1.8B less. Why even sell at this time for those conditions? Why now ride out the storm, let risk get reajusted to their favor, then sell the unit?
The fact the deal got done can be looked at as positive, but the fact that the environment is more challenging and commands less of a premium can be viewed as not so positive.
I recall Fast Money was talking up the Defense sector the other day, and did not think much of until I reviewed my charts over the weekend (sufice it to say, the names are within the many charts I review).
A review of LLL, LMT, GD and BA reveal a bullish tone within the space, breaking major resistance levels, and what appears to be an upward push. For whatever reason BA is the expception to this. Its charts is still pretty negative, and did not break any resistance.
This is what I see that made me double down on Friday. The SPY is hitting the 32SMA.
Looking at the chart more closely on Friday I realized the mistake I made. The initial short should have come at the 28SMA, then at the 32. There can be an argument made for further upside next week, but an argument can be made for a consolidation. I am not expecting any major downside, a move back to the 146 level is what I am expecting.
The closing price of the SPY has changed quite a few times… what gives? Is the AMEX not closing the market at 4pm or are they playing catch up with orders?
Anyway, just an observation.
Despite my short, the market is showing some interesting strength… but I am still hesitant in the very short-term, as such I doubled down.
If I notice charts improving on Monday or for next week I will cover the trade, and walk away.
I shorted the market with the 147 SPY Sept Puts again. Things are just too overbought (in the very short-term… see charts below). If the SPY reaches 147.28 or the SP500 reaches 1472, I will buy more puts. (if they break these levels upward, I will cover the trade)
Not looking for any big decline. Looking for high 145 to 146 via the SPY or until I see the consolidation from the overbought position, and will cover my trade.
Up almost across the board. And better than expected. (Oh and Airplane orders were up too… good for TIE)
Now these numbers are inconsistent, but the one constant is the that Airplane orders have been maintaining strength… something to keep in mind. When a hick up is seen with airplane order, then it maybe time to unload TIE (if you are a long term investor). (As for traders, once your target price is seen, unload.)
I took a very short-term short position on the SPY yesterday morning via the 147 Sept Puts, and was able to reach my target price so I closed out of it in the afternoon.
But going over my charts yesterday I see a lot of over bought positions and little market strength to maintain it. The charts for the markets themselves look interesting, but I do think a consolidation is in order… but I do not know if we are going to see any drastic declines.
The market is being primed due to saviors like BofA and a Fed rate cut, but a shoe to drop is the reajusting of the IBs earnings. As such we still find ourselves in a very volatile situation. A situation good for traders, so trade well.
SP500:
The SP looks interesting as it is sitting on obvious support, but we have a overall negative feel to it w/the stoch showing an overbought position and the VIX dropping off. IMO, not good. It is also hitting a bit of resistance w/the 28SMA. May consolidate around the current support before moving up. But a catalyst can move it either way, but the bias is to the down side.
Similar with the NAZ:
The Naz appears a bit more flexable, and not as negative. A rate cut will spark this baby, so pay attention to it. (I do not know if the Fed will cut rates this go around, I think they would rather see fuel prices go a some what lower before doing it, but the market says they will.) During the next over sold or consolidated condition play the QQQQ for that potential trade.
