Sunday, March 29, 2009

GM deal... just to bring in the bulls... And Much more stuff

Well, Obama is doing his best to keep this rally going. GM CEO forced out. I am sure he has a few more tricks to manipulate the market. But facts are facts.

I am looking at possibly entering FAZ, SRS, FXP... or do MORE puts on FAS.

The thing is we need these pull backs even in bear rallies. And hey, these bulls at the same time are thinking they want to cut their loses (from last year).

The start of this week is telling but i think the end of the week really points if we again go <7K or eventually get to 10K with a final bubble.

My co-worker is doing an admirable job of starting out with a modest $2K account. He is profiting as a newbie. Congrats to him. He has learned to leverage his portfolio to cover himself if the market moves in either direction. His buys like WMT, FAZ, and now consideration in oil (with summer approaching) are in the play books of many traders. But it is funny that he asks me questions that i dont necessarily know the answer to, maybe that is why he is doing so much better than how i did when i started. He is already about 20 to 25% just in a couple months!!! Awesome...

At the same time he is not trading options. So, that might be all there is to it. My way of using options has basically failed for the most part, but i have found success of late WITH options. But i am still wary of them... So, i have strongly recommended my co-worker to stick to regular securities for now. til this day i regret selling my AAPL stocks in 2007 and moving to options. Of course, if someone taught me options during the AAPL run of 2004 - 2006 (less volatile), i would have been considering retirement in a few years. Alas, that is why we still enter this market, we dream of getting some $ and spending more time with the family & our "more important things".

I am much more of a realist... married and have other more important things in life. Sure the $$$$$ would be nice (especially to pay off our debts), but being happy and not waking up 3am has done wonders for my health and my wife.

AND the fact is... there are A LOT more opportunities ahead.

Current... FAS & NOC puts... TAN...
financials: FAZ, FAS, XLF, SKF,
China: FXP
Market: SPY, SDS
Energy: DUG, DIG, USO...

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