Those who have read my blog know that I have been cautious and defensive. I remain so. That said, I would not be surprised if we soon get a strong and vigorous rally that last until the end of the year. Nor would I be surprised with a volatile market. In other words, I am agnostic as to the market's short term direction. Although I remain cautious longer term, I do have some juice in the portfolio should the market want to rally.
Energy remains difficult. My EnCana (ECA) bet is not working yet. But that is why I purchased a long dated spread. I believe energy will continue to rise, but I am not so sure on the timing. Silver continues to do well. I am happy with the performance of Pan American Silver Corp., (PAAS). And today, Danaher Corporation (DHR) is falling nicely. For those interested, compare and contrast DHR with General Electric (GE). General Motors (GM) remains volatile. Given the large quantity of short positions, I am not surprised at the volatility.
I actually enjoy a challenging market. I enjoy trying to assess how the markets will unfold. My research is generic—I read the Street Insight & Real Money (both sites are part of the TheStreet.com family), Wall Street Journal, New York Times, Financial Times, various blogs (please see Business and Financial Websites), and company conference calls. Even with generic research, I believe the average investor can do well.
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