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Who says I don't know how to be bullish?
Winners, winners and even more winners dominate the Thanksgiving Watch List despite the fact that the market itself has pretty much treaded water since I wrote it. There are still plenty of good entry opportunities on our original picks and, of course, I've found a few new stocks I like, even in this dangerous market. One big negative is the VIX fell apart on us so not as many buy/writes as we had last time...
Our last Watch List did very well but that was BECAUSE we took well-hedged positions and scaled in slowly! Keep in mind it's a watch list and not a Buy List. Buy Lists are for clear bottoms where we need to load up on things, we haven't had one of those since July 11th. A Watch List is for things we feel are good values so we keep our eye on them or, as I said in the previous post, a good place to start scaling in SLOWLY to new positions, so we can take full advantage of additional weakness.
All of these stocks are ones I like and they are good for any virtual portfolio. Anytime you see one falling though, that's the time we want to take a closer look to see if we have an opportunity to jump on something we like while it's on sale!
AET (12/21 - $34.04) Although they have jumped 40% off their October lows and up 100% from our spring Buy List, AET is still cheap with a good cash postion and a p/e around 11. All the insurers are being held down on fears of profit caps and other nastiness from the new Health-Care Bill but so what? They end up being utilities and utilities are good investments. The uncertainty is reflected in the contract pricing but the low VIX gives us good pricing on the Leaps so the 2011 $25s at $11, selling the Apr $34s for $3 and the Apr $30 puts for $1.50 is net $6.50 on the $10 spread.
