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September 26, 2007


Stocks Du Jour (QQQQ vs. QID) & Random Observations

Nice solid day of buying.

Notable New Lows: A ton of retailers and restaurants (consumer-led recession theme): PF Chang’s (PFCB), Borders (BGP), Cheesecake Factory (CAKE), Chico’s (CHS), Pier 1 (PIR), Sears (SHLD), Circuit City (CC), Staples (SPLS); Vonage (VG) — Happy Meals cost more than $1.30; all the homebuilders as usual; and the UltraShort Q’s (QID).

Notable New Highs: Lots of China stuff, the most dramatic mover being Focus Media (FMCN); Apple (AAPL), Crocs (CROX), Research in Motion (RIMM), EMC (EMC), and the Q’s (QQQQ).

I like posting the hourly overlay chart of the Q’s versus the QID — here it is from the beginning of July.

QID vs QQQQ

7 Responses to “Stocks Du Jour (QQQQ vs. QID) & Random Observations”

  1. Kacy_in_LA said:

    Wanted to comment on “The New College Try” and couldn’t find a way to do it except here … every year my department admits the best and brightest we can find from the disadvantaged backgrounds talked about in the article. And, despite paying them to go to school, giving remedial work, and in some cases toning down the program for them, every year 1 in 20 make it through. This problem (if it is one) can’t be solved at the college level.

  2. Kacy_in_LA said:

    As for the QID chart, leverage can kill if your not on the right side of the trade! lol

  3. C. Maoxian said:

    Kacy: The best way to comment on those delicious links is to send me an email. ;-) The best and the brightest disadvantaged kids I went to college with (maybe 5% of the student population) all came from China, India, Pakistan, Turkey, etc. 100% of them made it through (and all are heavy hitters today).

    You’re right though, the place to attack the problem is at the lowest levels — if not through birth control then through massive amounts of money being spent on pre-school… but then again nothing can replace good parents.

  4. dayo said:

    You are half right Mao. Studies have shown that increased funding does not have a correlated effect on student grades, but that involvement of the parents and the home life is the largest determinant of a students success.

    Kacy, you sound as though you speak from experience vis-a-vis “the right side of the trade.” Any trader who has traded long enough knows of what you speak. :)

  5. C. Maoxian said:

    dayo: Whenever I read the phrase “studies have shown,” I chuckle. You don’t need to do studies to confirm common sense conclusions.

    (The book Freakonomics has a good chapter on “parenting.”)

  6. Dan said:

    Waiting for trend reversal and will move into QID.
    I think I pulled the trigger on SRS too early.

  7. C. Maoxian said:

    Dan: What are you fighting the tape for? Haven’t you seen all these clowns wearing Crocs, listening to iPods, and madly messaging away with their Crackberries? I see them every day, even in Beijing.

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