Friday, March 13, 2009

Buy of EWC & BAM/Sold 100 XKK/

The rational, cautious and logical part of me has finally gained control after the longest frolic and detour engineered by my right brain in history has been finally squashed.  Fortunately, most of the stocks purchased were consumer staples paying good dividends.   We, and I mean both sides of me, are back on the same page playing with the rule book.  The most important rule is the VIX allocation model and its limited exceptions. 

I did sell the 100 XKK that I just bought in my IRA at 3.8 for $4.45. Buys of CPB LQD SYY XKK/Regressive Taxation-Cap & Trade/ With the semi-annual interest payment of $40, this brings the second trade of this kind to a successful conclusion with about a $90 profit with the dividend after commissions.    Maguire Properties/WAG/Goodyear Tire TC xkk/GE  I have mentioned that I will trade any speculative position in an IRA at the drop of a hat.  I am keeping the 550 shares owned in the regular account.  That position, along with many others,  provides the cash flow that I will use to purchase other securities when the trading rules permit it.   

In the Roth Ira, I bought the ETF for Canadian stocks (EWC) at 15.55, taking a partial position.  I will go up to a 100 shares total in the retirement accounts and up to 300 in the taxable accounts.  I sold out of my position in the retirement account at over 35 (look at a five year chart at the clear double top formation).  The Canadian market has suffered a similar drop to the U.S..  The Canadian energy  stocks have been slammed especially  hard.  Their banks seem to be in better shape than ours. The index is also populated with a few gold miners like Barrick and GoldCorp, along with Potash (POT). iShares MSCI Canada Index Fund (EWC): Overview I have not started a position back in the taxable accounts. 

I also bought a few shares of Brookfield Asset Management (BAM) at 13.73, and this company's shares have just been crushed over the past year.  This would be the type of position where I will ultimately acquire a maximum 100 share position with at least three separate orders spaced over time, averaging down at lower prices, or just quit buying if the stock starts to rise too far above the current level that it becomes unattractive as a contrarian play to me. BAM: Summary for BROOKFIELD ASSET MGT - Yahoo! Finance  This is a link to BAM's last earnings release.Brookfield Asset Management Announces Strong Operating Cash Flow of $1.4 Billion for 2008: Financial News - Yahoo! Finance  BAM is an owner of a variety of hard assets, including hydroelectric facilitiesPower, timberland Timberand office buildings in several major cities including NYC and London. Property

  I am not a financial advisor but an individual investor trying to navigate my way through a difficult market. I have never worked for a financial institution and never will.  In these posts, I am acting as an unpaid financial journalist and an occasional political commentator.   I am also aggregating financial news stories that I view as important and providing any reader of these posts, assuming there are more than a couple, with links to those articles, sort of a filtered, somewhat intelligent, free search engine.  Any discussion made by me of particular securities  is not a recommendation to buy or to sell.  Trade at your own risk.  Consult with your financial advisor prior to making any purchase or sale. I will try to identify my sales too but it may take a few minutes after I implement them to create a post explaining my reasons.  The sale may before or after the post.  Before buying or selling any stock, even one recommended by a trusted financial advisor,  please research it and make up your own mind which is what I always try to do.  Research would include reading reports, reviewing financial records, earnings estimates, sec filings and prior earnings releases and news.  In this post, and all others by me, I am merely describing my reasons for purchasing  or selling securities, and the potential pitfalls that I identified prior to purchase or the reasons for a sale.  The securities mentioned in this and all posts written by me may not be suitable for others based on their unique financial position and risk profile.  By way of example, it is unlikely that I will ever need the funds contained in my retirement accounts. Always read the prospectus before buying a Trust Certificate, bond, preferred stock or other bond or bond like investments.  Information contained in my posts has been obtained from sources believed to be reliable but cannot be guaranteed.  These posts by me do not constitute investment advice, nor shall they be construed as a guarantee of future results, or as an offer of any transaction in securities.   All content in these posts is provided for informational and entertainment purposes only, and it is a form of entertainment for me. 

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