Some changes in the portfolios to be reported in the days and weeks ahead. I've been adding brand new holdings. Getting rid of some other stuff, such as the small position in CIDM I sold today.
I've felt the need to refocus here recently. There are some names that I am simply invested in because I have become comfortable using them as a trading tool. This strategy is fine when the market lacks depth in opportunity. However, rather suddenly, I have discovered a handful of names that possess extremely attractive risk profiles paired with appreciation potential in excess of 300%. Undiscovered, misunderstood, in the dirt names that have no coverage or interest. The types of names that investors either cannot find or have no interest in finding due to the various biases ingrained within their souls.
Those who tell you this market lacks opportunity, do not know where to look. Those who tell you this market is overvalued are obscenely naive and misguided. Those who tell you this market is fraught with risk are victims of the psychological conditioning brought by the conflagration of the markets from 2000-2011. Those who can't embrace what is occurring will not do so until the final stages of the bull market when pain of missing any further opportunity of gains overwhelms their trepidation. No, we are not there yet. Not even close, in fact.
Is there such a thing as oversimplification of facts in an environment where facts flow loosely, taking all shapes and sizes? There is not. The essence of the markets boils down to the prevailing trend that is dominating the market, at the moment. The core of that trend lies in a few places such as the semiconductor index, transports and financials. The engine of the trend is in the names that seem the most overvalued and over-hyped.
In these places you will find the facts. I should say, in these places you will find simplified facts. These are facts that have been boiled down until all that is left are the minerals that make up their essence. Everything else is an additive. An additive that is predetermined through pseudo-intellectualism. Pretend know it alls that possess a flare for the useless and a pizzazz for the appearance of relevance. They should be ignored at all costs.
Simplification to the nth degree. I'll have nothing more and nothing less.
SOX hit a new high today on a shining range expansion. Does it get any more simple?
