BAGAKOAA; 4 January 2012 Someone's Been Sleeping In My Office

Post 574 CLICK HERE To See Past PostsJanuary/2012

 

This was to be sent out last night, Tuesday, but we have a man child who has taken to the comfort of a queen sized air mattress laying in the office which is Blog central. I did not have the heart to dislodge him last night so I too retired relatively early. So here is what was going to go out yesterday:

 

It was an early day for our first regular day for the year. Jack had practice at 6:00 am, and he was almost ready to head out the door on time except that he wanted an extra long shower, did not have his school bag packed and ready, did not have is basketball bag ready, did not have all of his clothes out of the dryer, and did not have the right inserts in his Bball shoes. Mom to the rescue. She pulled it all together while I just stood there rubbing my belly and wondering how she does it?

 

I got back in time to do some home work and make some notes in my Salve Lucrum notebook (A new commitment this year to journal as much as I can about my ideas, trades, wins and losses.). Watching the futures got me all excited about the opening, but more about that later.

 

After getting in and getting my kit unpacked and sharing new year greetings with a few folk, it was good to know I had addressed all 340+ e-mails over the holiday. It was good because by 9:30, I had to head to the Apple store to address my Apple ID issue.

 

My 10:10 am appt. started at 10:23 after two Apple employees checked me and showed me how efficient they were with their iPads and iPhones. (Ok pay attention, the type does not have a British Accent, but that was meant to be sarcastic.) Scott, asked me what the problem was. I explained the long sad story about the melding of 3 people into one iCloud at which he immediately scrunched his face and shook his head as if to say no no no. The I explained how I extracted one person from the cloud and how my Apple ID ceased to work.

 

Scott's reaction (he was wearing one of those Bob Marley Rastafarian hats on his head even though I am sure that Scott's closest proximity to Jamaica might have occurred by venturing to far south on the 5 freeway in California.) was that the iStores cannot mess with Apple ID's. It was like Apple's Corp inner sanctum. He look at it and found a field where I could enter my usual Apple ID as he said this will not work. It worked. We got in and to make a 40 minute story very very short, my Apple ID had been hijacked. Somehow the hacker was able to change my Apple ID and parts of my address. (I was now living in Rolland Iowa. Oh, Good I get to go to the caucus tonight.) We got it fixed and I have my head in the clouds again. Now I have to find out if Jack and Devin still have a cloud over their head. (Stole that from Ellen today.)

 

Then it was quick lunch and back to the office to close the account.

 

That was all I had done and was going finish the rest Tuesday. So now it is Wednesday at 10:10PM and we don't care if this loud typing is keeping man child up now or not.

 

Last night, Tuesday, Jack and Devin had their eyes examined and poor Jack could not do his homework because his eye were dilated. Dear, give me a break. Anyway after a quick pick up Italian meal, he was in bed by 9:45. Devin and I watched some "Body of Proof". I did so while playing on line poker and making $73,480 dollars. On of my better nights. (Rumor has it Congress is considering making on line gambling legal. The government estimates the revenue at 2-3 Billion a year. Time to keep a close eye on Zynga as they are the predominant on line poker sites.)

 

Then I closed out the night reading more about that nice kind warm loving caring guy, Steve Jobs, NOT!. Wow he was whacked.

 

Today, Wednesday we got Jack to school and I went to get my blood draw ending my two plus month of volunteer sobriety. (Ironically, I did not have a drink tonight?) After getting tinot the office a bit late, I had a great lunch with my el Presidente. No Mr. Obama, Mr. Richardson. It was good to catch up after the holiday's.

 

Then it was quick trip to urgent care to have my quarter deplugging of my ears. Yes I got wedged again this morning and everyone was sounding like adults in a Charlie Brown cartoon wahh wahhhwahhwahhwah.

 

Then back to office to catch up on a few thing then off to Santa Ana California to watch the Santa Margarita Eagles get a spanking in a basketball game by Mater Dei High School. I had the pleasure of shooting pictures during the game which allowed me to be buy one of the school hall exits and I got to hear the student from Mater Dei admire the game. In about 14 minutes of play I heard at least 9 F bombs. Let hear it for a parochial atmosphere to raise kids.

 

Now I am home and trying to get caught up on the blog and the results of the Iowa Caucus. In the Iowa "gathering of neighbors" 1,774 precincts representing 99 counties, delegates are chosen for the presidential nomination convention. They have spoken and Mitt Romney has eecked out other Republican Hopefuls.

 

Now I like Mitt, because his wife Ann keep sending me all of these very personal notes about life on the road and how wonderful her husband is. I am sure many of you get similar notes from Devin all the time. Now I do not think he can beat President Obama. Here is why. I believe Mitt is a closet moderate. Personally I do not think that is bad thing. Personally we need someone who can reach across the aisle and say, "Hey If you will admit that the Labor Surplus Plan for Appalachia (Now going into its 103rd year with no improvement of employment and a budget 63,000 times larger than what it started with.) might not be working than I will admit that Paris Hilton can afford to pay a bit more taxes and so will Warren Buffet just because he volunteered to."

 

Folks we are coming up to a point in time where the US Government will be 16.4 Trillion in debt. With a GDP of about 2% and unemployment of about 16% (Don't believe the U-3 number, use the real U-6 number) that debt will bring us down in 4-8 years. We have to stop the spending and we have to raise taxes, there are no ways around it. Yes even us greedy good for nothing 1 percenters should pay more in taxes until we get this debt under control or we get the economy on growth clip of 5% or more.

 

Don't get me wrong I feel Mitt would make a much better president than Obama, but it is not to be because he is a closet moderate and he will bifurcate the republican party into two groups with a yet to be defined more conservative party or at least nominee, and this will be an assured win for the Democrats. So if you like the current economic plan (1000 plus days without a budget), and you like the foreign policy (Oh yeah, we don't have one according to the Washington Post and one Mrs. Clinton), and you like the fact we have watched Iran become a nuclear sovereignty (Personally I am in the camp where I do not believe that they have capabilities they claim) then you are going to have a great year. If you don't fall into that camp, then maybe you will have a better 2013, maybe.

Now what went on in the market the last two days?

 

Market Direction

 

Tuesday was huge. Traders were sittin on ready and the market bumped up around 2%. Volume was good but not crazy good. There was still some apprehension nestled between the back from holiday Euphoria. (Hey that was good and I did not steel it I swear. Put quotation marks around it and Google and you won't find it anywhere, I promise.)

 

Today was dull by comparison and lacked any conviction what so ever. We are still in a tenuous confirmed uptrend, so if you have some stocks you feel strongly about, you could enter a position now, but make sure your stops are in place because this could be a rally built on sand.

 

Watch your distribution day count. Distribution days are days when trading volume is higher than that of the previous day without any price appreciation. As of today we have 3 for the S&P500, 2 for the Nasdaq, and 1 for the NYSE.

 

Please keep in mind how important market direction is. It is 70-75% of the influence on a stocks price. Be careful.

 

There is a lot more I'd like to share with you, but my boy is still awake and we have to get up for Basketball practice in about 6 hours so I will leave you with a communication I sent out today to the Salve Lucrum Family, the handful of folk foolishly trust me to manage some of their Mad Money. (Knowing I guarantee their principal and a conservative return.) Here is what we said today. Please pay close attention to the VIX strategy.

 

Dear Salve Lucrum Family;

  

 

We had a good day in the market yesterday

 

Volume was good, but not exciting.  As of early this morning I pulled everyone out of those ugly options I had you in.  You did take losses but we should be able to protect your capital and move on.  You are now in a nice grouping of well valued strong growth stocks.

  

 

In an inevitable volatility play, I got those of you with the cash into a long term deep in the money option play on the VIX.  The CBOE VIX is trading near the low end around 22.  The ETF tracking it is selling at 33ish.  I have bought us January 2013 VXX 20.00 call options for $15.90 contracts.  Each Contract controls 100 shares of the VXX so each contract costs $1,590.00.  With everything that is going on this year, the VIX is bound to spike into the 40s again or higher.  That will make these calls very interesting.  Last year our decision to get into long term VXX calls provided most of our gains.

If you have any questions, let me know.

 

Salve Lucrum

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brian Ireland
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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