Tag Archive for cash is king

Hedgephone Market Model Still in Cash

We’ve been long cash now for a good solid month and a half at this point, and for those following our calls you received a 9% return this summer plus the rising value of your cash, as the US Dollar index is up some 5% or so since we jumped out of our shorts (way too early mind you) and even though we stayed short and told others to stay short, for the mode we went to cash because we wanted to lock in some gains from our profitable 7/7/2011 short signal. At this point I am considering issuing another short call but because I need technical as well as fundamental confirmation, I am currently fine with greenbacks (which coincidentally are up $.54 right now to $77.60 or so)… The Euro is in big trouble and a weak Euro will hurt our exports and also our earnings in emerging and mature markets overseas. Inevitably, the overall market is tied to the strength of the banking sector and right now that sector doesn’t look very strong.

Hedgephone has a bunch of fundamental articles coming out through SA tomorrow, so stay tuned for some better drill down on stocks. Remember, for now cash (and gold, Sterling, Franc, Thai Bhat, Rupee, Kronor, Aussie Dollar, Silver, and fancy diamonds) is still king.

Still in No Man’s Land, but Cash is King

Looks as though the market is going to keep selling off with deflationary moves in the commodity complex, bearish moves in the Euro, and a rising dollar. What all this means is that we are likely going to test the 200 day moving averages again on the downside. The maket may be 6-8% cheaper than it was a month or two ago, but it is still 84% more expensive than it was 2 years ago…

Be careful out there as QE is the data point to focus on here, not anything else… the market is up huge, and “Wall Street got drunk” once again over the past couple of years.

I would be very cautious here, but you can always find values in any market on cash flows and book values.