Large Multinationals for Distribution Top phase

Hi Leaf,
 
Thanks for all posts as usual. Don’t know if you remember but back a couple three weeks ago you mentioned that Large Cap Multinationals that dominate the S&P 500 would lag until the distribution top starts to form at the Wave 3 high.  All makes sense to me.  Anyway, I have been scanning around for individuals names that might fit that bill.  I am trying MRK from your 130 minute expansion scan yesterday (I also tried INTC but took it off watching today’s action).  I am also trying GE but much less sure of this one – not sure what you might think on GE.  I sold AIG into earnings this afternoon which in after hours is looking incredibly misguided (I have SNV which is my only financial and looks very good to me on valuation and a bit off the radar basis).  Try to keep us posted on what else might fit this idea if something emerges.  Meanwhile, I am trying to follow your levels, targets, and stops with UPRO.  Wouldn’t be surprised you might find an IBM entry for me here.  I also have F which might fit this multinational idea but I would not doubt you think this is crazy high price here and too dangerous to hold past when you declare the top is in.
 
 In Meredith Whitney’s somewhat padded new book, Fate of the States, besides her usual fear-mongering to sell the book, there is a positive possibly actionable idea:  the “central corridor” of Texas, Indiana, and North Dakota are the new centers of economic growth.  Mainly because they were not much involved in the housing bubble in 2008 and also, of course, the boom in big farms and gas fracking is also there, too.  I notice in her 13F she owns PNC which is a national regional not really centered in those areas.  North Dakota is the only State with its own bank and a bunch of other small regionals none which look attractive.  SNV is all the southeast.  Whitney thinks we will see formation of “superregional” banks in the corridor.  I  also owned KEY in this area but it looks very extended and I sold my last half this afternoon:  it reached a 1.618x target you taught me to measure and so I threw in the sponge for now.
 
Fantastic call on PDS and hopefully you will find a moment to give a long term sell suggestion when that comes up.  XLE looks like it might just bust out over 84 tomorrow which will create a new ball game in that area perhaps.
 
I expect you will only answer this as/if something compelling emerges which is all good.
 
— 
Douglas Sly
dsly@fastmail.net

 

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About dougsly

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