Monday, May 21, 2007

Being Prepared

"Chaos in the midst of chaos isn't funny, but chaos in the midst of order is."

Steve Martin

Looking back on the dip the market took in February makes it seem like not such a big deal, just an over reaction. It was however a chaotic day and like Steve Martin says, chaos in the mist of chaos isn't a lot of fun. After a positive day on option expiration last Friday, the market is well within reach of the 2000 weekly closing high of 1527.46 area. Is this area just going to be a blip on the screen on the way to higher and higher numbers or is it going to act like a short term goal and lead to reflection about if the glass is half full or half empty? The dip in February is in the rear view mirror, yesterday's news, but it is important to have a plan for the next speed bump. They are out there.. a review of a strategy that worked well last time might be fuel for some new ideas; Red Right-20 Bingo Cross.

Having a plan and thinking of what-if strategies isn't being a worry wort, its being smart and planning ahead. These days can be an opportunity or a costly event, it all depends on preparation and planning. Making a wish list of key stocks that would be worth buying when they are sale is one way to prepare. Another way to stay prepared is to make sure your portfolio is balanced. If you have a couple stocks that are carrying the entire load of your gains, it worth re-balancing your holdings and having some ammo for when opportunities arise.

Recently discovered company doing business in the Liquid Natural Gas sector.

Chart Industries, Inc. (Chart Industries) is an independent global manufacturer of engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The Company supplies engineered equipment used throughout the global liquid gas supply chain. The largest portion of end-use applications for its products is energy-related, accounting for 56% of sales and 58% of orders during the year ended December 31, 2006, and 79% of backlog in 2006. The majority of its products, including vacuum-insulated containment vessels, heat exchangers, cold boxes and other cryogenic components, are used throughout the liquid gas supply chain for the purification, liquefaction, distribution, storage and end-use of hydrocarbon and industrial gases. The Company operates in three segments: Energy and Chemicals (E&C), Distribution and Storage (D&S) and BioMedical. On May 26, 2006, the Company acquired Cooler Service Company, Inc., an air-cooled heat exchanger business (CSC).


Interest Rates are important to watch. Below is a chart of the 5yr Treasury Interest Rates. Both charts going over concepts covered in the posts from last week.

Interesting bond article.

Another must read, commentary by Bill Gross.

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