Gold or iPhones …or Gold iPhones …March 2012

First off…it’s just more fun when markets are going straight up and hats off to those riding this uptrend.  It is harder to ride trends than it is to find them.

Of course easy money leads to hard losses when this run ends.

We are having a $MACRO discussion on the markets over on Stocktwits now that we have added ‘conversations’.

I can’t get my head around any valuations as things seem to be getting silly in the consumer space. LULU Lemon ($LULU a stock that I dont own anymore) has a $9 billion valuation. To put it into any context I turn to Nike $NKE which is now just 5 times larger. I doubt this gap stays the same and the hedge funds are having a field day betting on the different outcomes. Just be glad you do not have to do that for a living.

Taking a look at The Stocktwits50 this weekend (the best spot on the financial web to start your homework), I see mostly Consumer Brands and software. These sectors have led for a while.

It could be time for a breather…it could be time for commodities over brands for a spell… or it could just be time for Gold and oil plated $LULU pants…

I do know that the price action is bullish and that the traders are still leaning short and over analyzing the leaders like Chipotle’s and Salesforce ($CMG and $CRM). I have the conversation an hour before Salesforce’s earnings call to prove it.

Loving the tape trumps fighting it.


  1. Chiro85 says:

    3 Rules to Trade:
    1) Never fight the tape.
    2) Never fight the trend (If there is one).
    3) Never fight the Fed.

    We all ignore these rules sometimes and that’s when we take some of our biggest losses (hubris). 

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