12 April 2024

Markets were lower this week as the suggested rotation from Tech to others was delayed. On Friday there was a rumor that Iran was going to attack Israel over the weekend and so traders and hedge funds adjusted positions. As we've been writing, rumors aside, the markets need to rest and some of the can't fail tech stocks need a retrenchment.

Unfortunately, pullbacks also affect our stocks although their exposure to international events is minimal. Fortunately, the pullback has given us an opportunity to move back into stocks we've been trading such as Bristol Myers, Verizon, Kohl's, Foot Locker and Ford.

We also added to Apache Oil, The Gap and VF Corp (which seems to be on a one way down elevator). When they love them, price is no hindrance; when they hate them price is no hindrance. The Gap was $8 last year before running to $28. Abercrombie was $20 before running to $150 (now $110). Many stocks- aside from the Super 7 and another 50 large cap S&P behemoths-are such minor positions in multibillion dollar portfolios that the big boys and girls getting in and getting out doesn't affect their performance and is more for window dressing purposes. Our aim is to trade the 5% to 20% moves that large funds need to buy and sell significant building and eliminating positions.

We are maintaining 50% and greater cash positions while we trade.

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5 April 2024

Stock measures closed 1% higher on Friday following 2 selloff days that left major market measures down on the week. The March employment number exceeded prognostications and average hourly earnings were up 4%. Hooray for workers. Interest rates on Treasuries moved higher (prices lower) as the bond mavens rued the good news.

Market Gurus are now worried that the Fed won't cut rates at all this year when a few months ago many were predicting 3 or 4 cuts. That's one reason for the pullback this week. The other could be that market leaders are fully priced.

During the week we continued adjusting selling Intel at a too large loss and Verizon for middling profit. We repurchased Walgreens at a many many years low and 10% where we last sold. We also repurchased Apache Oil as they completed their merger and added Huntington and Key Banks. We sold Bristol Myers, Campbell Soup, and Cisco for scratch profits to add cash. We repurchased Nordstrom lower and bought Nike and Starbucks in larger accounts.

We ended the week owning: Chipotle, Starbucks, Nike, Pfizer, Apache Oil, Walgreens, Key and Huntington Banks, Ford, AT&T, Southwest Air, Nordstrom, Macy's and VF Corp.

Hopefully April will bring May Showers early. We need moisture in the Land of Milk and Honey.

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