Still own it and will be adding on the way down, aside from that I still own a nice amount of FAS that I think im going to sell around SPX 900-950, which would probably put it around $12+.
You obviously don't trade TECHNICALLY. And you obviously break every rule known to mankind when it comes to prudent money management rules. Averaging down on a 52% loser? Gee, that sounds like a great use of working capital!
Despite all the bad news like 8.5% unemployenent rate and...The market responde is UP. Some claimed this is due to the cheap money, some said is "amateur "(retail) trader that get into market and buy anything they see wlthout think twice. But end of the day, who care ?(even it is GS disagreed with it). The reality is the market is UP and UP. MY expectation is the market will shot UP like hell in this monday(as the crowd feeling now is buy everything regardless how bad is the fundemental and it can't get anymore worst and this will pump up the market )-Sit tight and enjoy your ride in next monday.
Here is food for thought: The only reason the EPS and Markets reached the prior levels they did, betweem 2001 and 2007....was pure leverage. 50:1. Period. That was not "Real" growth based on profits...it was a balloon filled with hot air. Now the balloon has poped....and the Idiots on Wallstreet, well most think that we will return to 2005/6 levels of growth and profits? Hummmm based on what? Yes, the goverment is "Pump'n up the Ballon again". So, Morgan may be on to something and I agree. Unemployment will definitly reach the same digits as under Carter. At what Level, I have no idea but double digits for sure. Do you really believe that this "Rally" is sustainable? With heavy regulation coming down from OBAMA, with Redistribution of wealth, with the TAX, from all fronts being raised, to include Capital Gains....with Socialism coming into our system only Morons would believe that this "Economy will return as it once ways." Just read the news, listen to the Speech's, read between the lines. This is a Shift in Economic Models, bigger than ever before in History. We are entering into a Phase of the "Unknown". Sure, GDP may grow 1% year over year for the next decade. I believe that. If you have yet to reach the top bracket in Taxes, or make your first Million....well its gona be a hella lot less likely you ever will at this point. There are exceptions but I'm talking the 90% of the 10% who are trying. The market is allowing the down ward pressure of about 17 full months of selling, to take a break. Nothing more.
For what it's worth, I also took a small position in the SRS this afternoon when the IYR hit 29 and will be buying a little FAZ when the XLF hits 10. I typically only trade these intraday, but starting to build a position at this point in anticipation of a counter-trend is not the worst strategy in the world. At S&P 880, I'll consider doubling down ... if we get there before 780. As long as itâs just a small portion of your bank and youâre confident enough that you can see it through, than to hell with everyone else. Just stick to your game plan!
You can repeat that 1000 times and the bulls would never understand the point you are trying to make, as I said a year or 2 ago was that excess liquidity was driving the market higher and creating bubbles in every asset class known to mankind, now that this liquidity is no longer available the economy has completely shut down. Many believe that the economy will once again thrive like it has done in the past, that jobs will be plentiful and GDP back above 4%. They will be proven wrong in years to come when the economy is still trying to find its way back to a new beginning. This is a crisis that will only fix itself in due time, throwing money at the problem and bailing out nearly every failing bank with taxpayer money is not the way to do it.