U want long "asian" ideas with fundamentals AND minimal "decoupling" dependency or any of the commodity monkey balls trade.
Longer term trade:
- Long DHR - impressive growth in asia (NOT growth INDEXED to asian growth thesis - the decoupling people's idea) and niche medical equipments, good moat. Current $75, my target $90 in 3 months.
- Long IF - Indonesia Fund. 10% discount to holding. Very correlated to China. Risk is if food riot escalate out of control. Current $10, my target is $12 in a month with a stop at $9.30.
- Long JNJ - No target, chinese can't compete with these brands. To graduate to upper class there need JNJ product in household. Chinese will also discover KY-jelly is also a must in any household.
- Long BRK/B. The guy is travelling again, to Europe. The last time he travelled around the stock did an impressive nearly 50% gain. (last year). Don't miss the boat.
- Long SMN. These are double-inverse basic materials company. The cost is inflation in raw materials and labor. Check out AA and DD, tell me what you think. No time target.
- Short DSL and FED at ANY price.
- Direct short GS and DONT blink. ABS head trader has quit and this should tell you something about what's the level 3 assets look like. Hint: http://mtgspy.blogspot.com/2008/04/finished-reading-asset-level.html
Spare change allocator:
- Buy FXI calls $10 out of the money, short term.
- Buy 200 FRE every $3 down with NO stop loss.
- Experiment with covered calls in SRS.
- Experiment with market timing in SKF.
Note on the long SMN:
- zero profit margin for industry + general anxiety + $3 gas when SMN @ $40,
- collapsed airline/transportation + negative margin on general industry + food riots + $4 gas when SMN @$30.
- would you like a ring-side seat with me when SMN hits $20? Yeah, I knew you would.