Replies to post #6315 on Channeling Stocks

[JLS]

Three to four years,

but it would need extra stimulus, and I don't know what that could be.

I posted that because it aligned exactly with a conclusion I made and posted several weeks (or a few months) back. I thought a period like that of the middle 90's could easily happen again.

It's a sort of a twist on "this time is different". We're not asking that anything be different. We are simply suggesting that history repeats.

Maybe the stimulus is that the largest world economies would like a little higher inflation as that would make it much cheaper to pay off old, long-term debt. Stock markets do well during inflationary periods. Then couple that with other countries coming out of their very long recessions (and depressions for a few).

Such a situation would also be a huge bear market for precious metals. How long was the last bear market for gold? Twenty years? I don't know, but it was a very long time.

[JLS]

MU July Buy-Writes

MU -- Micron Technology

I started the setup of one buy-write last Friday, 06/28, by buying MU at 14.03. It did very well right away so I put off selling the Call, hoping to lock in a better price on the Call in future days. It was giving it all back today so I quickly sold Jul 20 $14 Calls this morning for $0.55. I want it to be very short-term because MU has been doing very well and I would prefer to just keep the stock or quickly repeat short-term buy-writes. So far, not too bad -- less than three weeks to expiration then wash-rinse-repeat or buy and hold stock for a while, then write a Call to lock in profits.

After finishing that, I went to a different account (where there is more money) and completed another MU buy-write of the same size. I wrote the Call first for $0.55 then bought the stock for $14.04.

I really like it when I can do these on a stock that is trading at a strike price. Actually, I prefer a stock price that is at least three pennies below strike, and I didn't get that. My goal is to make the money on the entire trade, not necessarily the stock. But if I have that 3-cent margin on the stock then at least I show a profit on the stock if it is assigned. Either way -- it will be a good day at the office.

[SilverSurfer]

EZA Africa should retrace but look for the buy op

[SilverSurfer]

[SilverSurfer]

When we look at the precious metals, it has become quite apparent that we have already seen the lows of the major correction, and we will see massive moves to the upside this autumn and into 2014. The move has already started now, and will accelerate very soon. So for investors who are not fully positioned, right now is the time to invest any spare cash that they have because the upside move in the next couple of months will be considerable in my view.” http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/9_The_World_Is_Now_On_The_Edge_Of_A_Massive_Collapse.html