General Stock Ideas

[bigworld]

scstocks: Good morning. I was surprised to see our markets open essentially flat considering that it was a bloodbath over in Asia overnight. When I hit the hay @ 2 AM the major Asian indices were down 3%....I used today's pause to completely sell out of PSQ and HDGE for now. I bought some KOL and some XME. I'm pretty much sticking with my hunch that the Dollar is topping out and will sell off for a few weeks and that inflation hedges like GDXJ, KOL and XME will rebound strongly. The US Treasury market is extremely overbought. The US 10-YR Treasury hit the lowest closing level ever on Thursday. Treasury and AAA Corporate bond yields across the board haven't seen these levels since 1954 according to one analyst I follow. This flight to safety will be the right play, just not right now. That trade is too overcrowded and will have to reverse before resuming again. GDXJ hit a 3 yr low under $18.00 when I really tried to load up. With markets it is safe to play the reversion to the mean. When something is priced at a historical extreme it is safe to bet that it will reverse course eventually and revert to the mean. We'll see how it shakes out.