Friday, August 21, 2015

Bonds, Dollar and PLNT

ADHD and GRBK from the previous post did exactly as I expected and fell the next day. That indicator is one of the best. Treasury Bonds TLT may test the highs as the current market environment doesn't seem concerned about a rate increase from the FED. They very well may not raise rates. The market reaction to the decision will be important. I think it's to early to commit to a long-term position shorting TLT until there is a setup around TLT resistance or a market reaction to the news. The dollar looks very weak here technically too. They'll get their inflation if that is what the FED is looking for. They will get it sooner or later. Hopefully, they will not let it get out of control when it comes.

I'm still holding a very long-term investment in PLNT Planet Fitness. They charge $10 to $20 a month for a membership while the national average is close to $40. Even in a recession they will have customers. They could even take market share. The stock is down to $16 now. I don't care. Below $12 it is a steal.

I'm still holding THLD short as well. This one is looking good now as it is breaking down finally. I shorted at 4.26 roughly and it is 4.03 now.

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