Update on My Stock Picks

I haven't had much time to devote on my stock picks and how they are faring. I have been so consumed by Countrywide (CFC) and the current economic issues, that I might as well rename my blog (just kidding). I also want to clear up my blog name. No it is not a spelling mistake. I combined "irreversible" and "rant" together to arrive at IrreveRant Stock List. So I hope that clears up some confusion.

As far as my positions go, I covered my BIDU short at $94 due to increasing strength. As soon as BIDU breaks $100 again, it would be a good short and if it tests the 200 EDMA again, that would be a good indication that the stock wants to trend lower. If this market is just a "dead cat bounce", which I think it is, then that should take place in the near future. My thinking is that the new resistance will be at $105. If it fails to break above that level, I would look into shorting or buying longer term puts (3months or more).

Apple (AAPL) has tremendous momentum and has actually held up well during the down trend. I would look to continue to avoid short positions on Apple until further issues on SEC investigation is more clear. I would ride to the long side and then plan on getting out at $97 level, which should be the resistance level.

I am extremely bullish on LHCG which is provider of home health care for wound care, nursing care, and other necessary home health related issues. Being involved in the medical field myself, I know that just about the only favorable reimbursement rate that exists in the field of medicine is home health care. This is a lucrative business as many of my colleagues have delved into this venture with much success. LHCG will continue to grow via acquisitions and taking out smaller players in the Southern states and possibly planning expansion into other regions. Growth by acquisition in this space makes sense because they can dictate pricing terms with medicare and secondary insurance providers on favorable reimubrsement schedules. Why? Because institutionalized long term health care costs more than having home health care visits and demographically, more people in the future will opt for this type of care in the future. Until more players jump into this arena for this rather untapped market, more growth will continue. I project 12 month price for this company to be $75 or higher. So I am building long term position in this company. I currently have no position but the technicals look promising and this stock has held up rather well for a small cap stock during the last down phase. I would wait until we can confirm with certainty if this uptrend is for real before starting a position. But I do not foresee a price below $25 if we enter the next leg down, at which time, it would be a buy for me. So I am patiently waiting.

Most of my position is centered around the April and July $35 puts. I think once CFC gathers steam and the market finally succumbs to reality, we should see a quick $5 to $15 point drop.

Good luck.