Rip Van Winkle days

It has been a long time since I've bought a stock. With the Dow making new highs and the S&P 500 going 76 days without a 1% intra-day decline, the longest streak since 1995, (such wisdom worth sharing at cocktail hour!) I guess as a value investor I could go back to sleep. Reminds me of Rip Van Winkle, albeit it hasn't been twenty years. Ridiculous, what is going on?

The last time I was awake, I noted that the REIT, Retail , and the Financial sectors were going gang busters; I was somewhat concerned that my pre-disposition to slumber and torpor would make me miss out on some wonderful opportunities. I mean, like the ones that presented themselves in the years 1929, 1987, 2000, 2003, etc. As a cigar-butt investor I can only dream about such occasions. However, when I did wake up, I realized that "Fantasia" was still the raging box office hit on Wall Street. Mr. Dow Jones confirmed, "another forty winks will do me no harm", and left me in my surreal world.

I know, I am being facetious, however, it is true, I haven't bought a stock recently. At this point, I certainly consider the market overbought and purchasing some put options within the retail sector and more recently some within the oil sector appeal to my conscience.

So, when I did manage to keep my eyes open and familiarize myself with the contemporary, I discovered that JC Penney was not only the hottest place to shop in, but the hottest stock to own? Stodgy, never-in-vogue, blah, etc, etc... JC Penney? Boy, that is weird! Yes, my dear, this is a stock that could have fattened your wallet by 400% since 2003..... hmmmm....someting's amiss..

Anyway, back to my non-Dali, terra-firma world, whilst flipping through my Sunday circulars, I also discovered that JC Penney's new clothing line is called, "a.n.a" i,e "A New Approach". Further investigation revealed that it is a corporate accronym for "anorexia nervosa" i.e. eating to the point of extreme weight loss (I am just kidding). I thought this promotion really meant, fattened JC Penney investors need "trimmer" waist lines.

Bottom-line, investors from Mumbai to New York feel that 15% annual returns are their god-given right and I think reality will set in sooner than later. As they say "Gravity Sucks". I guess gravity will play it's part soon and I will have to relinquish my days of slumber and keep my eyes open for those wonderful opportunities where a dollar sells for 50 cents.

Disclosure: I am short American Eagle Outfitters (AEOS), Abercrombie & Fitch (ANF), Dicks Sporting Goods (DKS), Kohls Corp. (KSS), Mastercard (MA), Exxon Mobile (XOM).
I have no position on JC Penney (JCP), however, it is high on my list of shorts.