The market fork will be resolved sooner rather than later.

We added some more long exposure today: The S&P500 Dividends ETF (SDY), Citigroup (C), and Heckman Corp (HEK).

Our main model is now 51% cash, 49% long.

Category: Investing

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

21 Responses to “Edging a Touch Longer . . .”

  1. rktbrkr says:

    This is good, talk about chutzpah, the Fed saved AIG and now AIG turns around and tries to bottom fish the Fed

    http://www.cnbc.com//id/42346390

  2. rip says:

    Wow. Did I read that right? You bought some Citi? Some trash? Some overly valued mark to market whore?

    Ah, but TBTF. A favored corporation.

    Well, I guess you have to play the game. Even if you’ve boosted your personal career trashing them.

    And exactly where does morality and personal integrity fit into this equation?

    At least you shared that weird nugget with us. Guess it clears your conscience.

    :<)

    ~~~

    BR: Sometimes, you have to buy what you hate

    That’s fiduciary responsibility for you!

  3. ASVITALE says:

    ARE YOU BUYING C AS YOU DID BEFORE ..FOR A TRADE..IE SELL ABOVE $5 ?

  4. VennData says:

    Just stay away from long bonds if you value your wealth.

    There are enough Recovery Deniers to keep them liquid until the Fed ends QEII. You can tell them by their propensity to pretend QEIII is coming, mock the Fed, recite Hayek etc…

    The one thing that would change my mind? If David Rosenberg turns bullish.

  5. MayorQuimby says:

    I don’t know how you guys can even follow this any longer.

    Wake me up when the SPY is trading at 7x forward and not before…Until then – you guys can spend all your energy and potential trying to follow the artificial pumpage and then try to get out before the inevitable waterfall. I think this nonsense can go on for years or just weeks. It’s really anybody’s guess.

    Oi vey – what a waste of human talent and energy though.

    When this whole debacle is over – what are you all going to do for a living? How will one make it in this world without any fundamental skills (real world)?

    Sad when those who add value to society (workers, innovators) are penalized (inflation) so those who suck value FROM the world (well – you guys) can continue to live high on the hog.

    It’s all out of control and quite frankly – disgusting. Not that I blame anyone here – I have plenty of friends on Wall street and they all say the same thing. It’s like they get paid to play Monopoly. They all know it’s bs and going to end at some point in a very ugly way. But they’re married to the system at this point.

    okay…rant off.

  6. VennData says:

    The Tea Party has been stabbed in the back. They will be in there selling like banshees…

    http://www.reuters.com/article/2011/03/31/us-usa-congress-spending-idUSTRE72T5XT20110331

    … with Bush’s horrifying Prescription Drug Benefit not even mentioned – to name just one – how can any self-respecting powdered-wig wearing patriot stomach the GOP?

  7. Rouleur says:

    In Gold We Trust

  8. Rightline says:

    BR used to track clicks as a market (contrary) indicator. I’d love to see if any of that correlation still holds up. Also, it would be cool if you could go back a ways and create a chart of clicks or posts against the S&P. I recently went long INFY in what looks like a busted head and shoulders potential breakout.

  9. Rouleur says:

    …”a possible agreement that would cut roughly $33 billion in spending during the current fiscal year, which ends September 30.”

    …spare change at best, my friend, although, every penny counts…

    what % of the budget is this?

  10. DW auto says:

    Who says we ever go back to 7X forward in our lifetimes? Our hard earned, scrimped and saved cash won’t be distinguishable from the next guys inflated cash when it comes to future inflated priced goods and services.

  11. Ivan71 says:

    Rouleur,

    about 1%.

  12. BusSchDean says:

    From a business perspective the Tea Party is all back and no front. They have many specific things they don’t want and a few vague, unspecified things they want (i.e., things they cannot translate into a coherent, internally consistent, politically viable policy). All of which makes them an inevitable victim.

  13. george matkov says:

    With commissar Bernanke flooding the markets with cash with the explicit intention of creating the illusion of ‘recovery’ through the equities bubble, all this talk of technical and fundamental analysis is a huge waste of time. The longer it takes to resolve this the greater the bust. Keep on pumping Barry.

  14. doug says:

    admitted to Pentagon budget alone = 500,000,000,000 or 10 billion a day.
    33,000,000,000 is 3 days worth of the pentagon. Chump change is all

  15. furiouschads says:

    does buying the vix count as being long?

  16. DeDude says:

    The sell-out of tea party outfits to corporate interest should bare well for stocks. Nothing to fear they were all huf and puff, and now they have been paid and become obedient little corporate sock puppets.

  17. rip says:

    @BR: Just to stir the pot a little more.

    Obviously you have no fiduciary obligations towards your readers. I know what that word means.

    And there was no prelude that C was a buy. Just a report that you bought it. Guess that might boost your stock purchase, eh?

    So, I guess we as readers of your blog can simply remember the old phrase “reader beware” and be aware that your postings are not exactly self-less or based on trying to “fix what’s broken”.

  18. Steve M says:

    Forget the purchase of Citi…I’d be more worried about Heckman. Dan Quayle, of “potatoe” fame, is listed as one of their directors :)

  19. nofoulsontheplayground says:

    Typically when you get a closing 5-day high/low ratio on the S&P 100 of around 60-highs versus 5 or fewer lows we will see 3-5 days of consolidation or a pullback. Yesterday the ratio was 58-4. The reverse is true as well (5 highs and 60 lows).

    In other words, if we do break up to new, higher closing highs on the S&P 500, it will not likely be until next week sometime.

    I use the S&P 100 internals as a proxy for this as they are more reliable than the relevant ones for the S&P 500.

  20. icm63 says:

    Barry, here is our chart on Citigroup…we like it above $4.60

    This better NOT be an April fools !

    http://www.readtheticker.com/Pages/Blog1.aspx?65tf=177_barry-ritholtz-goes-long-citigroup-2011-03

  21. ShakyShot says:

    Technical Correction: You stated “We added some more long exposure today: The S&P500 Dividends ETF (SDY)”. There is no “500″ in SPDR S&P Dividend (SDY). In fact, it is produced from a screen the S&P 1500 Composite Index, according to Morningstar.

    Inferior Selection? Vanguard Dividend Appreciation ETF (VIG) is providing better returns and selects larger Caps. Why would you not prefer it?