Safeway Inc. FCF 197 mm better than last year due to lower expeditures.

Another stock suffering a big sell off today was Safeway. It dropped almost 20% during this trading session after reporting its quarterly report. Although the report missed the expectation, as a dividend investor, would you care about a quarter miss? The Safeway’s situation may be different however. In-store sales dropped and the competition is tougher than before.

Safeway have paid dividends since 2005 and increased the dividend for 7 consecutive years. Will the latest result change company’s dividend policy?

A great article by Tim Iacono, a founder of the investment website ‘Iacono Research‘, providing market commentary and investment advisory services specializing in natural resources, was published recently in Seeking Alpha in regards to Gold.

Those who bought their GLD shares last fall are selling at steep losses.

This appears to be a classic case of not understanding what you own as most institutional investors and money managers who bought GLD late last year probably never really liked the idea of buying gold and, now, they just want out.

Presumably, many bought GLD on the recommendation of investment banks such as Goldman Sachs who, last fall, were predicting further gains for the yellow metal as the next round of Fed money printing got underway.

That didn’t work out the way investment banks thought it would.

So, here we are, a full week after the gold price plunged to almost $1,320 an ounce in panic selling and GLD investors continue to sell gold, many of them believing that they’re lucky to be able to get out now, at slightly higher prices than last week’s lows, making their realized losses a little less painful.

This is a classic example of how markets work and why an investor should stay calm and do not panic. Remember, if you pick a good stock, a good company, which pays dividends, has a solid dividend history, growth, makes money, you do not have to be worry about the attitude in the market. In case of Gold, this drop was a classic panic selling bringing a great opportunity to buy.

I also looked at the Fear & Greed chart (see below). Interestingly, the market mood was moving towards fear, but the S&P 500 doesn’t correspond to the market sentiment at all. Are we really seeing an exhaustion in the market? A potential lack of buyers? Who knows. This can also indicate that the market participants are just taking a break before more buying hits the market. The future will see, where we are heading.

(JNJ) – a few minutes later, look what is going on with Johnson & Johnson company on a daily chart.

Is it just an error in my charting software or did we just saw a minicrash?

Check the chart of JNJ

Click to enlarge

What do you think? Could you see a similar drop in your charting tool?

(JNJ) – is Johnson and Johnson heading into a parabolic run up to crash later?
Although JNJ is excellent company with a wide moat and a great dividend payer, the recent trend is too close and similar to a parabolic uptrend. Trend like this always ends up with a crash. I would be however happy with it because I want to add more shares of JNJ to my portfolio.

Check the chart of JNJ

Click to enlarge

Pay attention to a 5 year chart on the lower right corner which resembles an image of a parabolic run up. I may be wrong, but try to get ready in case to correction comes.

Remember the market last week? All looked like we are going into a correction. I was anticipating it and hoping for it, since I wanted to add more shares to my current holdings. But, it didn’t materialized. Today the market reversed and marched up at earnings.

Last week everybody in media was freaking out what a bad earnings season we have and this week an optimism overruled the trend again. Another bump on the road up, though.

But nothing is lost. The market can create a lower high this time and then we will witness a trend reversal. So what to do now? I am sitting tight hoarding cash for the next major correction. The only exception was Gold (GLD) which I bought last week.

Once again I was able to beat the market last week. With gold and other stocks falling sharp I expected my account taking a blood bath, so I was quite surprised when I saw my account down only by -0.67% compared to S&P 500 which tanked by -2.11%. If this trend continues until the end of the year, I will have a very successful year.

If you want to see my trades and quick notes in real time (or almost in real time) check my Facebook Fan Page. I am posting my ideas there a lot faster than here.

My GLD trade from last week seems to be working well and I am seeing nice gains already (this was probably the reason for my account beating the market). Some analysts out there however say, that the gains in Gold may be temporary. I do not believe them, but we will see. If the gold market tanks further, I will buy more shares.

A massive wave of Asian buying of precious metals is emptying dealer shelves across the region. “I haven’t seen this (kind of) gold rush for over 20 years,” says the head of the HK Gold & Silver Exchange, adding that old-timers haven’t seen anything like this for 50 years.