Sunday, April 29, 2007

Fat Cats

The NY Times hits the nail on the head with this:

"I think one of the significant issues of this business that we are all struggling with is that there is an inverse correlation between compensation and drive,” said Mr. X. president of an investment advisory firm. “In many cases the incredible wealth that is created by this incentive compensation structure has a propensity to dull the senses and dull the drive."

You want someone who is hungry and has a vested long-term interest in your portfolio. That is why my clients come to me: the short term skills that lead to long term results.

Saturday, April 28, 2007

Holy Halibut, Batman

Yes, Alec Baldwin will not get Father of the Year '07. He still is one of the best character actor's of our time. My favorites Baldwin roles are in: Glengarry Glen Ross, The Confession, The Cooler, Married to The Mob, Outside Providence, The Juror, and The Hunt for Red October.

Is Brady Quinn the next Brady? Tom or Greg is the question. Personally, since Vince Young was not the highest QB drafted, the NFL obviously does not know talent. Watch both '05 and '06 Rose Bowls and tell me that there are any better players around. All you need to do is draft defense that will keep him in the game, and you will win 10 every year. Go Titans.

Stocks were mixed with Mister Softee saving the day with in line numbers. Gas/Crude crack spreads at widest ever. Probably some hedgies short and covering a la Nat Gas spreads last year. Will we sell in May and go away? Tune in next week. Same Bat time, same Bat channel.

Friday, April 27, 2007

Texas Flood

Being a Financial Advisor in Austin is far from my days on the floor of the American Stock Exchange or the commodities options pits. But the markets remain the same. To invest wisely over the long haul, you need the knowledge of what happens on a day to day basis. Upside gaps get filled, weak hands create buying opportunites, and a psychologist is a trader's best friend.

A-Rod has come back to earth, who really cares about the NFL Draft, the NBA playoffs, or the Democratic Party Debates? Wouldn't you like to see both houses of Congress in the State of the Union address chanting "Rudy, Rudy" instead of that lame golf clap anyway?

Wednesday, April 25, 2007

She was a Day Tripper

So I finally had my office desktop replaced after IT decided that having someone on call every week to run diagnostics was not going to fix the problem. I told them that 6 months ago, but I am not an engineer.

Did they forget the DOW 13K hats today on CNBC? Couple of large value funds long a ton of AMZN blew the doors off the competition today. Like I always say, buy the fund manager, not the fund style. Yesterday X dips after beating earnings, today ATI does the same. I guess comparing materials stocks '06-'07 to fiber '99-'00 is too easy. Another round of short covering/long chasing takes us to new highs. Does anyone care about the FED anymore?

How about a Reality TV ETF.

Tuesday, April 24, 2007

There's a lady who is sure, all that glitters is gold....

My morning routine:
5:15 clock radio alarm goes off. Get local news and happenings from Rob and the Morning Crew
on KASE 101.
5:30 log on to crackberry. See if anything pending from overseas. Check spoos, Asia and Europe. Bloomberg and Reuters usually have some lame comment from a large long side player like "the market needs to rest".
5:45 - 6:15 S,S,S.
6:15 Fonzie arrives.
6:30 hit the kitchen for breakfast and lunch detail.
7:00 pull out for the long haul. Sirius check with Howard, Ferrell recap from last night, check Bloomberg once again.
7:30 log on to workstation (if it is online, ready to put it in the woodchipper). Pull up Morning Research. Get good info on the Austrailian/Singapore industrial readings.
8:00 Check please.

We lost one of our greatest authors yesterday. If you have not read anything by Halbertstam, ping me and I will give some good insight into his work.

Put me in coach, I'm ready to

Odds that A-Rod hits in 57 straight games and bangs 75 dingers this year? Turned on ESPN just as the Yanks were about to lose another one to the Devil Rays, when Mr. April steps up and whacks a frozen rope to the cheap seats. I think he even may get a curtain call in the Bronx this weekend. Forget rotisserie, this guy is vindaloo.

Speaking of baseball games, I received a call from the Round Rock Express yesterday. They are having a game televised in June and want to fill the house. The offer includes a Nolan Ryan Bobblehead. It seems if I get this one, then I just need a Jerry Kooseman to complete the '69 Mets pitching staff.

So we are in the midst of earnings season and no blowups yet. I guess the analysts have lowered expectations or the CFO's have come up with more creative accounting. This rally feels like short covering and performance chasers than anything else. I see a lot of good charts but like to pull the trigger on pullbacks to support (see 1st week of March). In the immortal words of Sgt Joe Esterhause: Be careful out there.

Monday, April 23, 2007

Take us to Warp 5 Mr. Sulu.

You know your getting old when you ask your 8 year old to help you log on to Myspace. Between starting a blog and connecting to extended family in cyberspace, it seems my technological background has run its course. Heck, the only video game system I ever owned was the classic Atari. Remember those days mastering games such as Combat, Adventure, and Asteroids. I once spent a whole week trying to master a specific slope on Activision Skiing and breaking a certain time in order to get a free game.

Since I am pretty technologically inept, Tech stocks are usually not good indications of where I look to invest. Although I do trade a four letter name here and there, the trades are mostly chart based. One area I like for bargains here are the homies. Yes, I think the real estate market is in the crapper, but the stocks already reflect that view. Buying some of the big names in the group at 6-8x earnings is a good place for money right now. Someone usually shouts out at this point that you can't get too hurt falling off the curb. Besides, with the market making new highs, would you rather buy homies on the cheap or material stocks tied to the price of tea in China?

Sunday, April 22, 2007

We're Movin on up, to the East Side, to a deluxe apartment in the sky.

Well its Sunday evening and you are prepared to sit down and veg in front of the boobtube. In the past, you went CBS with 60 Minutes, All in The Family, Alice. Then Fox came with The Simpsons and Married with...Children. Lately its been ABC with Makeover the Home Improvement Edition and Desperate Housewives. Any way you like it, TV Guide has the ultimate couch potato hour tonite. Join Peter Brady, 8pmEST/7pmCST, as he saunters down memory lane with the inaugural Jump The Shark Television show. My buddy Jon Hein parlayed his 30+ years of watching television into a media franchise. My advice is to tune in, and start drinking heavily.

Of course those with recording capabilities should watch it after the Yankees-Red Sox rubber match on ESPN.

Never Forget

On this day of Rememberance, we stop, and think.....

Saturday, April 21, 2007

Friday, April 20, 2007

Feliz "el dia de la tierra" '07

Markets exploded to the upside on the 37th anniversary of earth day. Good earnings from the GOOG, follow thru on yesterdays reversal, expiration, all causing the shorts to cover and hit happy hour early.

Lunched at local establishment that claims to have ties to the Lower East Side, maybe of El Paso, not New York. Mets blow out Marlins to grab a piece of 1st with the hated Braves.

Family dinner outing tonite, wife's birthday tomorrow, probably go for a run early Sunday. I'll be back later that evening to preview the week ahead.

Keep your feet on the ground and keep reaching for the stars.....Scooooob.

Thursday, April 19, 2007

Spamming the globe

Technorati Profile

Put your tray tables up and your seats in the upright position.

Woke up this morning, got myself ready for a repeat of Feb 27.
China GDP up 11%, market sells off on rate hike fears, Spoos down 10.
Good thing Blackberry was working, never knew that the umbilical cord is actually used to make PDAs.

Reasons market rallied off of open: financial's earnings looking good. Sub-prime fears already played out. Everyone remembers that since that bottom in March, market has made new highs. Hence, buys the dips until it doesn't work. Tomorrow is options expiration, getting paid to have that gamma.

Merger arbitrage still active. Clear Channel gets higher offer, IPS trades up with material stocks lower.

Biotech madness continues with a nice double off the wall in left center for Amgen.

Getting a lot done in the banking world. Seems demand for capital at these levels is strong. Commercial Real Estate investors don't mind the 6% returns.

See you soon.

Getting on board

Joining the fray of the blogosphere. Here I will describe the weekly insights of a veteran Wall Streeter who is deep in the heart of Texas.