Search / 183 posts tagged Leveraged

Essentially I made one terrible trade which got me caught on the Thursday downdraft. Now I’m looking to get short and in fact did today in the indexes. However, it looks like there might even be the beginning of that bounce I was talking about happening yesterday.

Basically everything I said in my last two posts holds true still for me. I cut my longs this morning completely in the indexes and got out with a “daily profit”, however, it was loss overall. I rebought the indexes and am looking for something else to sell into tomorrow. Stocks that worked great today for me.

The market popped huge and the whole move was done by 10am. Then the selling began. Like a fool or at least I feel that way right now, I thought it was the breakout I was waiting for. In fact, it turned into yet another head fake. However, this round the picture changed on a technical basis.

How to Lose Big Bucks in Sheets As the tide of corporate defaults begins to build, word comes today that Linens ‘N Things, the seller of sheets and towels, has a plan to exit bankruptcy protection. The terms provide more evidence that wildly overconfident underwriting standards were not restricted to mortgage lending during the credit boom.

Lets review about the Stock Market Crash of 1987 0 The stock market crash of 1987 was the largest one day stock market crash in history. The Dow lost 22.6% of its value or $500 billion dollars on October 19 th 1987! In order to understand the crash, we must first study the cause.

I’m long the indexes and they are doing well today. Dow has hit +200 on the day. Double funds and leveraged ETF’s are doing well. FRPT bought yesterday is having a minor breakout today. I’m expecting considerably more upside. QCOR still performing. MRVL bouncing. Bought: BBY - Charts look good.

Indexes rallied today giving me 2.6% in the RUT and 1.5% in the NDX. That was nice, but we really haven’t made much progress to the upside yet. I say yet, because its possible that is coming in the next few weeks. Or I’m incorrect and I’ll eat my words. During these past two weeks of malaise trend traders haven’t really had much to trend off.

Led by a “stratospheric” finance sector, distressed junk bond issues have risen to their highest level in more than five years, according to Standard & Poor’s. Distressed credits are speculative-grade rated issues that have option-adjusted spreads of more than 1,000 basis points (bps) relative to Treasuries.

What have I been saying for 2 weeks? Hint: B _ _ _ h _ W _ a _ n _ s s! What caused the rally today? Was it Buffett this morning? Was it Bernanke? Was it bullshit? Yes the answer is bullshit, because neither of the two stories the financial media are pinning this move on were the reason.

Bought UWM and QLD this morning with impunity. Up on both of those trades. I knew I had too much of a good thing when CALM hit 9%. Today it pulled back hard. Things still look ok and I’m looking beyond this week’s trading action, not tomorrow or Friday. I’m a little ticked though I missed the solars.