Friday, June 3, 2011

Toxic

... is the word that comes to mind when I think about this market. DNS -97, -40.5, -13.

Trades:

REIT STWD hit the trailing stop, -8.8% (not including dividends). It just never got moving in the right direction. ARR definitely was the better pick of the two.

Value-sales port, +38.2%
I sold the VSH calls, -30.4%. VSH is reasonably priced but the growth factor has evaporated and apparently no one wants to own it now.

The value-sales portfolio has dropped to +38.2%.

Reversal alerts: (10). SORL is the only candidate here. Beat up and only maintaining (but not really growing) earnings and holding a P/E below 5. But sales have grown by double digits (18-36%) over the last three quarters and it's sporting a pretty good reversal pattern. Worth watchlisting but not much else in this market.

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