6/24/08

Economics

Cramer on oil speculation:

http://www.thestreet.com/p/_htmlrmm/rmoney/jimcramerblog/10422594.html

The budget realities both candidates face:

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/20/AR2008062002889.html

Technological advances in oil drilling:

http://mjperry.blogspot.com/2008/06/todays-drilling-leaves-tiny-footprint.html

Politics

Domestic

International War Against Radical Islam

The Market-Disciplined Investing

Technical

I was hoping that yesterday the S&P would recover and close above the lower boundary of its 1982 to present uptrend/April 2008 low (which would indicate a firming of investor sentiment); or as a less desirable alternative that both major Averages would continue to fall--while not the optimum outcome, at least it would have provided clarity of direction. As you know, we got neither which means we wait for the Market to tell us which way it is going to go. I remind you that at the moment the most obvious trend for both indices is the very short term down trend off their respective May highs.

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The VIX (volatility index) and stock prices:

http://bigpicture.typepad.com/comments/2008/06/10-year-vix-cha.html

A long term chart on the bank stocks:

http://bespokeinvest.typepad.com/bespoke/2008/06/bank-index-bkx.html

Fundamental-A Dividend Growth Investment Strategy

CNBC Million Dollar Portfolio Challenge

Portfolio 1 (87.5%): Sold: none

Bought: none

Positions: Automatic Data Products, Johnson Controls, Nucor, Canon

Portfolio 2 (87.5%): Sold: none

Bought: none

Positions: Franklin Resources, Graco, United Technologies,

Mastercard

Portfolio 3 (92.4%): Sold: none

Bought: none

Positions: Nucor, Smith Int’l. ConocoPhillips, Mastercard

Portfolio 4 (85.3%): Sold: none

Bought: none

Positions: Suncor , Colgate Palmolive, Peabody Energy, General Dynamics

Options-Covered Writes

At the Market open this morning, the following call options will be Sold against one quarter of each Portfolio’s position:

In the High Yield Portfolio:

Alliance Resources Ptrs July 60 Calls at $1.625

In the Aggressive Growth Portfolio:

Peabody Energy July 95 Calls $1.375

Bucyrus Int’l July 90 Calls at $.50

Smith Int’l July 90 Calls at $.875

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News on Stocks in Our Portfolios

A positive write up on Peabody Energy and Bucyrus Int’l (both Aggressive Growth Portfolio):

http://www.thestreet.com/p/_htmlrmd/rmoney/jimcramerblog/10422695.html

UPS (Dividend Growth Portfolio) guided analysts $.15 per share lower for second quarter earnings. The stock will get whacked on the opening. I will be monitoring.

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