3 October 2011 Did We Wait Too Long?

BAGAKOAA; 3 October 2011 Did We Wait Too Long

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October/2011

Today I got a note from, my buddy Ben that cracked me up. He said that listening to all the dog excretion stories was actually making the investment and economic section of the blog more enjoyable. Well then you are really gonna love the investment section today.

I wrapped up the blog about 10:45 last night and was gald to hit the sack by 11:00. I am rereading The Most Important Thing by Howard Marks (a good investment book, good but not great).

The Most

Anyway about midnight Max one of golden retrievers was staring at me to go out. I did not know this but somehow Devin "heard" him staring at me. So I got up and let Max, Jacee, and Captain out to be sure we could enjoy the rest of the night. While I was out, Devin does her motherly rounds and checks on Man Child and discovers yet another doggie poop Tate/Bianca murder scene where Captain was sleeping.

We (mostly Devin) got it cleaned up by about 12:45. We eventually dozed a while and by 1:50 max was staring again. I took him out and, yes you guessed it Captain has exploded one more time. By the time we got that cleaned up, Devin and I were wide a wake and it was 2:30 am. We went into the office and watched two episodes of Mr. Ed the Talking Horse

mr ed

interrupted by really interesting infomercials. I ended up buying 24 poached egg devices and almost bought a bladder infusion support device until it said something about vaginal insertion. We went back to bed about 4:30 am. The alarm went off at 5:35am.

We are not done yet. Devin was taking Max and Jacee to the vet today and while talking to me on the phone (hands free) I heard this, "huurrrruupppp" and Devin let out a yell and said she would have to call me back as Jacee was just puking in the back of the Escalade. She got rid of Max and Jacee and cleaned the truck to take Captain to the Vet as we were now thinking that maybe he had Giardia, a bacteria in the lower intestines of dogs. We thought this now as Max was also showing signs of intestinal stress. (But showing a bit more decorum by waking me up to tell me.) About this time Son In Law and Daughter Call from some pristine quiet beautiful place in France and Ryan apologizes to Devin for the trouble Captain is causing. Now Devin cannot figure out how Ryan knew and was thinking that the excretion events had been somehow picked up by SKY news and broadcasted in France. (No she didn't I just made that up). Ryan explained that he is an avid and happy reader of the Salve Lucrum Blog. That's my boy in law.

There are 48 readers of the blog and I just realized I had two new people "join" and I don't know who they are? If you are reading this please read the disclaimer over on the right next to that good looking guy and just drop me a note that you read it. Thanx.

Tonight after getting home, I picked up Jack and he had a hydration issue and had low blood pressure a head ached and shortness of breath from practice. Well at least his homework was done. He is working on homework as I type. I just checked his daily runner and he is doing a good job of staying on top of things.

Devin made a great dinner of Ham Steaks, bruschetta, and mashed potatoes. We cleaned up the kitchen together and she enjoyed every moment I was helping. Well, I think she did as she suggested I go upstairs and help Jack with homework.

All in all a great day, except for that stock market thing.

stock plummit

Did We Wait Too Long?

skeleton

We called the favorable Auto Report this morning and we called the ISM survey positive surprise today. We did not see the big surprise in Construction spending. (Caution because it was driven by public large project spending. Don't get me wrong, we'll take the good news.)

Unfortunately, it was not enough to take our eyes on all the bad news out of Europe. That was bad enough, but what we did not want to get correct was the call on the S & P 500.

We watched the index fall from 1138 to 1107 quite rapidly and with apparent volume. As we said yesterday that $1,100 is important psychologically, emotionally and technically. Without getting into too much technical details program trading is executed by really really fast computer that crunch numbers based upon historical data with statistical engineering calculations applied based upon standard deviations that drive upper and lower control limits. When the data leaves a certain range determined by upper control limits and lower control limits (Bollinger Bands for you really geeky people like me.) then automated trading can begin.

auto trading

Automated trading accelerates the trend in place. Lower gets lower and higher get higher.

At 11:30 am we made the cognizant decision to sell everyone out of their positions, and moved half of their portfolios into gold and silver. In most accounts we continue to hold GLW Corning Glass Works. This is an extremely undervalued stock that is poised to recover quickly due to the shift to smart phones and tablets where their Gorilla Glass is King of the Beasts. It is terribly oversold and at 11.88 is 12% below book value, has a Forward looking PE of 6, has very little debt and is conservatively 48% below most of its target prices. We not only kept it, we bought more today. Almost everything else is cashed out.

As you now know The S&P 500 did breach and stay below1,100. We hope this is temporary, but watch the direction and volume tomorrow. It could be wicked. Tonight the technicians came out and indicated that there is another support level at 1,050. I hope they are correct, but until confirmed, we think gold, silver, and cash might not be a bad place to stand and just observe.

Salve Lucrum

BAGAKOAA;

I am not a professional investment advisor. Anybody reading my blog and investing accordingly must be out of their minds. I have made more money than I have lost. There are many more qualified people than I to actually tell you how to invest your money.

BAGAKOAA=Boys And Girls And Kids Of All Ages

Salve Lucrum=Latin for Hurrah for Profit.

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