Tuesday, October 27, 2009

Day 13 & 14

I had back to back trading days, so I’m combining them into one post.

On Friday, the market was down a little under 1%. Seeing as I was gunning for the Pullback that Never Wanted to Happen Ever, I decided that the next retreat the market makes, I’m going to buy buy buy. Actually, buy, buy, buy, buy, buy. And that is what I did. With about 5 minutes left until the closing bell, I started spending. I expanded upon APOG, BAC, GE, and YHOO. I thought I expanded on SPIL, but I overbought BAC and didn’t have any available funds left for buying the lot I wanted.

With those four purchases, I effectively decimated my margins on each of those positions. I once was up over 110% on BAC. Post purchase? Say hello to 14%. Thankfully, I had such enormous gains with each of those positions that I am still up overall. Again, as a die-hard Buffetor (I have a million names for this), this is all about the long run. And having more shares at a relatively low average price will always benefit me as gains will accumulate faster.

So, that was pretty much Day 13…a 5 minute shopping spree. Oh wells.

Actually, not “Oh Wells.”

This morning the market was up nearly 100 points for no reason whatsoever and then TANKED. I lost money on pretty much every trade I on Friday. To add insult to injury, SPIL was up. Semiconductors are weird like that- they just go against the current. After one giant, “Ugh” I looked that the only other bright spot in my portfolio today: DBB. Given my history with DBB, it really didn’t take much for me to see a perfect opportunity to sell. And sell I did. I made a pretty penny. But because selling is a lot more complicated than buying, I’m not going to see that paper for about 5 days. And that was Day 14.

So what will I do with my WINDFALL? I’m kidding, its not a windfall, but I like thinking that I’ve got all this money coming back to me that I’ve had tied up in stocks for the past 7 months. I’m considering expanding again on remaining positions (EGO, APOG, BAC, GE, YHOO, SPIL).

Why, the astute Newbie would have noticed that F isn’t there. It’s because I’m planning on selling that too. I dunno, something about F isn’t sitting right with me lately. Maybe its because Cash-for-Clunkers is over, maybe its the $20B in debt that is coming due next year with no clear form of cash flow. I dunno, but either, I think it is time for to take the profit and run. The stalker Newbie would have also noticed that SU isn’t there either. I’m selling because I don’t think high oil prices are sustainable. I’m just waiting for it to touch $40 (the share price) for me to sell out!

Another thing I am considering is actually getting into Retail now. I know, I’ve been trying to get into that sector since before Beverly National was around. (For new readers, I make fun of my savings bank for still not allowing online transfers. Isn’t that , like, so prehistoric?) But yeah, I think I might. With these two pullbacks, those prices are looking pretty sexy. SKS: 5.96 (6.00 in after hours trading), ZLC:6.00.

I have stopped tracking SIRI because they were served with the 180 days notice. Pretty much they have 180 days to bring their market value to over $1 or they will be delisted from the NYSE. 6 months is a long time, but I don’t have that appetite for risk yet, so I’m going to avoid it for now.

No comments:

Post a Comment