Unemployment numbers came out today unchanged, while new starts for houses came out at an annualized low earlier this week. Financials have been battered all week and today was no exception. NObama is showing his weakness with this economic crisis. He has no understanding of economics or how to run a business/nation. His plans and bills do nothing but delay the pain and help the worst type of people in America....lazy people who blame the rich. The market is not liking this as we can see from red ink flowing in Wall Street. As you have probably read, NObama is still jealous of finance people making tons of money. He probably shouldn't have turned down GS to be a community organizer 20 years ago.
Lets start off with a missed opportunity. I mentioned on Sunday night to watch Sprint (S). I believe in this wireless carrier and feel that it has been beat up just a little too much. I said that I would make a play later this week or early next week. Well the reason I said that was because I was going to play the earnings call. S took a huge markdown for Nextel which shows the company losing money and was a non-recurring expense. Cash wise, They look to be a great bet in the future and the "churn" they experience is sure to get better. IM AN IDIOT!!! S earnings came out today. Up 20%....oh well.
Like I've said in earlier posts, I'm waiting out option expirations day before making any trades and committing any capital. It looks like my MSBY trade will expire worthless which is good because I'm short the option. That will be a 100% gain minus commissions. My BYOND trade is iffy. It looks like I might be assigned and will have to close out my short position by buying 500 shares of BAC @ $4. Ugh.
My plan for tomorrow? Pray BAC goes up above $4 and pray MS doesn't go above $24. I didn't update yesterday. Portfolio was down -$41.24 on Wednesday and today I was down -$1,074.49.
Nationalism is the new Bankruptcy and its pissing all over BAC and Citi for that matter. I guess you have to hope that substantial traders did almost the inverse of your position and sold uncovered calls and are now forced to buy BAC in order to cover their positions, but that doesn’t seem material as the stock has dropped aggressively over the past week and a half and is hitting virgin lows. Although your stocks are not perfectly correlated, they are correlated in the sense that they are both financial stocks and your desires for tomorrow’s market are conflicting ones. Although if I were you I would spin it as a hedge play, which on the surface looks calculated. Good luck.
ReplyDeletei use chicken stock in a healthy meatloaf recipe, does that count?
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