Friday, May 13, 2005

Airline Stocks: Upgrade lifts Northwest as sector creeps higher - Airlines - Transportation - Markets/Exchanges - Market News

Are we having fun or what?

The hedge funds are confused. Many have been pounded by credit swaps. Others have bet big that long term interest rates are about to rise. I do not wish to take joy in the pain of others, but it is always fun to be on the right side of the market.

Yesterday, I wrote that the Wicked Witch (inflation) is dead! Hyperbole is sometimes the best way to make a point. Mark Twain once issued a wonderful press report that said the reports of his demise were premature. Never-the-less, the price of Gold, other metals and commodities has shown that hyper-inflation is not a problem. The government indicators are all over the board. Economist cannot figure out if the economy is too strong or too weak but the market says that inflation is not a problem.

In this market, it is fun to trade on momentum. I reported that as soon as AMTD and ET traded higher last Friday, I doubled up positions. I did the same thing when EBay and NWAC started to run. Since investors are totally confused by now, one can hop on board what ever is working and catch a nice ride.

I try to be a disciplined investor. I think I do a pretty good job. My family has recently sold investments held for 10 years or more that did very well. With stocks selling at a discount to bonds and real estate, one does not have to be disciplined to make money in the market. This market is a wide market. All the money that had piled into energy and materials is looking for a new home. The NAS is up 24 points. INTC and other old time wonder stocks are up along with most every thing else. Have some fun; buy stocks before the company is bought by another!

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