Wednesday, July 16, 2008

Market Update

Finally, we get a good day in the markets with a huge surge in the financials after the Wells Fargo (WFC) numbers came out. Despite today's big move, a lot of positions are still hurting. I think we'll get a better idea of whether or not this is the start of a real rally or just another false alarm when Citigroup (C) reports its numbers this Friday.

I'm still very long Manitowoc (MTW) and Glatfelter (GLT); both are underwater at the moment. And, I guess we'll see how General Electric (GE) closes this week. If shares stay below my $28 strike price, I will probably sell another round of calls for the next month.

The super-performer of the portfolio, Wet Seal (WTSLA), touched 5.25 earlier today. I have been telling myself that I'd unload another chunk in the 5.50-6.00 range. We're definitely getting close to that range now. So, maybe I will need to start thinking about whether or not I want to add to existing positions, or if there are some other companies out there that I want to start positions in.

A friend of mine thinks Wellpoint (WLP) is entering value territory. Almost all of the healthcare companies got clobbered on the passage of that Medicare bill recently. Anyway, I am a bit hesitant to throw money at that sector. But, I'll probably keep that company along with a couple others (Aetna (AET), Coventry Health (CVH)) on the close watch.

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