Congratulations, to Rick Santorum for coming in second place last night in the Iowa Caucus. (Please do not be afraid, this is not a political article, I am here to make money.) It’s amazing how Rick, who was in single digits, in early December “Surged” to come in second place. Keep in mind Newt Gingrich was the anointed one by the media and the polls in early December. Before that it was Perry and then Bachmann… or vice versa. So you probably are asking well, I didn\’t come to the site for political commentary. CNN, MSNBC and FOX do a great job of that 24 hours a day.
So as an objective observer, how did Rick “Surge” in the polls? I don’t know, do you? Did he win a debate, did he say something important, or something funny? Not that I am aware of… If I missed something, please leave it in the comments. What I believe is the media was looking for a fresh face, or a new topic, something. How else can one explain such an incredible increase in such a short time? Can the voting public of Iowa be so fickle, that they can change their position so quickly and based on non events.
So I might be going for a long walk for a short glass of water, but this is generally how I see the market’s reaction to the European Crisis or the American Debt Crisis. It seems the media has a pretty good case of attention deficit disorder. Just yesterday, Greece warned of a Euro exit, but that didn\’t seem to shake the markets, yesterday or today. I don\’t mean to pound the table, but it\’s hard to miss the serious problems that face Europe. And don\’t worry US banks, were lending money to insolvent European nations just as freely, as they were handing out money to burger flippers and bartenders to buy half million dollar homes in 2006. But the markets don\’t care, nor are they rational. The good news is that Hardline was able to take advantage of yesterday\’s move.
So my picks for the rest of the week will be FCX and SLW. I like the miners, more so than their respective ETFs. I am very concerned about the GLD and SLV ETFs, as they have so many stipulations in the prospectus, more on that later. But in the meantime, just ask the holders of VZZ ETFs about their automatic termination. I also sold some puts against my new favorite stock, SHLD. (specifics on the trades, can be found in the newsletter)
Friday, is the big jobs numbers. My estimation on the jobs number = I like Broncos over the Steelers. With that said, I am off to Charleston, South Carolina for my other job, will be back on Monday with more. On a lighter note, if you didn‘t buy congressperson or senator a gift this year it’s never to late.