SPX A few observations from yesterday while I was out. Consumers
are either out of money to buy meat at the higher prices or they
are refusing to pay the higher prices. Sam's Club had a lot of
steak, pork, ground beef, etc. all marked down because it was near
expiry. I go there regularly and this rarely happens for them
marking things down at that pace. Some of the stuff was 50% off. I
was happy to take them up on the sale as we have a freezer. I don't
only love deals in the market, I love deals in the grocery store,
and in anything else I can get them on.
Bed Bath and Beyond is beyond terrible and has been turning off
their a/c to save money. They replaced their CEO yesterday and have
an activist investor breathing down their neck. If anything, they
have some real estate I guess, though there isn't a real business
there I can see that can profit over any period of time. I'm
certainly not shorting it at $4.99, just crazy to watch. Going to
be a good bit of retail restructure and/or go out of buisness in
this cycle.
Regarding positions, I took the rest of my long exposure off
yesterday SPXL while the market was green in the small range. I
kept some remaining LABU shares as I own them from the $4s. I added
a position in LABD though to hedge before the close in the $37s. I
sold that position this morning at $40.69. Good enough for now
until I have more evidence as to where the general market is going.
I was concerned that SPX 3,795 didn't fill on the cash gap wise and
got so close a few times and the market being so lathargic ahead of
more economic data. They more than filled it this morning.
Steve, thanks for the great newsletter! Also kudos on the
systems trades Matt!
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SPX A few observations from
Posted by fundamentalvalues on 30th of Jun 2022 at 08:01 am
SPX A few observations from yesterday while I was out. Consumers are either out of money to buy meat at the higher prices or they are refusing to pay the higher prices. Sam's Club had a lot of steak, pork, ground beef, etc. all marked down because it was near expiry. I go there regularly and this rarely happens for them marking things down at that pace. Some of the stuff was 50% off. I was happy to take them up on the sale as we have a freezer. I don't only love deals in the market, I love deals in the grocery store, and in anything else I can get them on.
Bed Bath and Beyond is beyond terrible and has been turning off their a/c to save money. They replaced their CEO yesterday and have an activist investor breathing down their neck. If anything, they have some real estate I guess, though there isn't a real business there I can see that can profit over any period of time. I'm certainly not shorting it at $4.99, just crazy to watch. Going to be a good bit of retail restructure and/or go out of buisness in this cycle.
Regarding positions, I took the rest of my long exposure off yesterday SPXL while the market was green in the small range. I kept some remaining LABU shares as I own them from the $4s. I added a position in LABD though to hedge before the close in the $37s. I sold that position this morning at $40.69. Good enough for now until I have more evidence as to where the general market is going. I was concerned that SPX 3,795 didn't fill on the cash gap wise and got so close a few times and the market being so lathargic ahead of more economic data. They more than filled it this morning.
Steve, thanks for the great newsletter! Also kudos on the systems trades Matt!