Rowebbiz

If you’re an online entrepreneur( I don’t like the term entrepreneur actually), then you should watch the stock market and you should know what’s going on with the U.S. Dollar. Basically, everybody is betting against the dollar right now, everybody hates the U.S. Dollar. Honestly, I do too!

A nice ( stupid) correlation is taking place on the market: for over N consecutive days, the S&P goes up – the dollar goes down OR the S&P goes down, the dollar goes up. So, if you’re investing like I am, all you need to do is to look at the dollar. No fundamentals, no analysis, no IQ of over 140, no news other than news on the dollar.

Another very interesting pattern has been holding on for the last couple of months : the end of every month brings the Dollar UP and the market DOWN :

Now isn’t this great. A simple pattern that makes for an investment strategy. And quite a good one, so far I havem managed an annualized return of 12-15 % after taxes. K-cing!

Being that time of the month, I’ve cleared/reduces some positions with the purpose of taking profits.

Rackspace Hosting and Ford have been great, Oracle did ok, Citibank is sitting flat and I’ve decided to cut my stake as it’s doing nothing for my investing style.

Via Blomberg ( http://www.bloomberg.com/apps/news?pid=20601110&sid=aV9NDhhhtRLI), investors are rushing to Bear-Market Funds :

• So-called bear-market and long-short mutual funds, designed to protect against falling stock prices, attracted a record $10 billion this year through October, more than double the previous high in 2006, according to Morningstar Inc. Asset managers have opened 19 long-short funds, the most in one year.
• The S&P’s rebound this year may limit the growth of alternatives in the near term,says Burton Greenwald, an independent mutual-fund consultant in Philadelphia.  “As the public returns to the equity markets, they will be less interested in these somewhat exotic products,” Greenwald said. “Given a year or two of traditional stock-market returns, their memories might prove to be very short.” ( we’re all greedy, aren’t we ?!? )

I am going long on the dollar, this will provide some insurance and it will be easier to short than the S&P. I have opened a position with PowerShares DB US Dollar Index Bullish( UUP). Will see how this goes.

Playtime over.

In the meantime, I’ve launched a pretty massive AdWords campaign using dynamic keyword insertion and their client editor. I just noticed they opened up an API. This is great, I hadn’t used AdWords in some time now, but I’m really looking forward to some experiments with their new features.