Thursday, April 30, 2009

Three fun stox. Maybe. Oh yes two of my fav shorts TOO !

I noticed some whining about Nat Gas and Uranium on the move today. What has worked for me for this previous week, has been DEJ, & CXZ. Of course does it count that I have watched DEJ for a year, and CXZ for 2 yrs? Yes they look trashed dont they ? They ought to ! ! They are Juniors that have been thrashed Right,Left & Center by the lack of financing, etc, etc, ad nauseum. What they got is honest mgmt, IMO, some assets, and a technical launch pad, and a fairly developed base. THEY ARE JUNIORS, not majors, please take note, they will subject to all the BS Juniors have to deal with. Your call, DYODD. If you have read your copy of "TA for Dummies" so much the better. If not, well it could be a place to start. Later we will have a chatroom and a forum to do these discussions. Right now I do have a TA forum on Investor Village, if you want an invite, let me know.

Now dont you hate that sugar is in everything you buy? Well OK, besides ROGERS SUGAR INCOME TRUST [ RSGUF - OTC-Usa, or RSI/un.to, on TSX ], what else could you do?
So far I am in the starting gate with this one, but will share it. CZZ is Cosan Ltd, a Brazilian sugar producer. No dividend makes it different than ROGERS SUGAR, but it has some real sugar production, in an economy where sugar is a driver. Further for the American readers, RSGUF is obviously a hedged against US currency, being a Canadian stock. Well, CZZ might fufill that role for the Brazilian REAL, if anyone wishes to hedge their US stock position with a Brazilian stock. AGAIN, your comfort level, your DD, define whether you play this.

OH am I nuts? I mean I am calling a correction, right??
RIGHT, Right & right ! ! ! I am hedged. My general market hedge is being short XLI, the Industrial SPYDR, and for an individual stock showing marked potential for weakness, I like INTEL [ INTC ]. INTEL is a very scary stock as it is contained in so many indexes, but was giving me "wounded minnow" vibes on my scans and filters, so I have selected it along with the above issues for the Educational Investment Simulation I am running. If you decide to "GO LIVE", make sure you do your DD and have money to risk.

Right now I am watching the slaughter of innocents as the mullet are drawn into the net. This is a great time for the Market Makers to unload lots and lots of stock on the public, so they are cashed up for the bottom. C'est la vie.

Stay vigilant, keep your powder dry, post your stop orders, and harvest cash for your next buy program.

DG

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