Big Day for the Markets

Big day for the Markets today. Dow up 379 points, S&P 500 up 43 points and the NASDAQ up 89 points. Probably one of the biggest days for the markets percentage wise ever. Except back in the day when it shot up over 15% (53-62 points back in 1933). Citi's CEO Pandit came out today saying that his bank has been profitable in the first 2 months of year which is amazing. Bank of America also came out with news from yesterday that they will survive this economic downturn. About time BAC, you SOB!

Portfolio up $3,598.27 ......Yawn. Just like I don't go nuts when I drop $4,000, I don't go nuts when I go up $3,500. The key to me is trying to even out my equity curve and become consistently profitable. On the way down I was buying and holding, a bad idea. Then when I thought we were down enough, I sold covered calls and still held, a bad idea but less so. Now that we look to be moving sideways my strategy of selling both calls and puts against my stocks seems to be working to perfection. One trade today and one missed trade.

Trade: Bought to Cover (BC) my put against MS. March 18 MSOP. With MS going up over $4 today, MSOP dropped $1.80 (-69.23%). I took this opportunity to cover my short buying it back at $.95. I sold this put at $1.30 so I made $.35 before commissions. I'll take it. I could have let it expire worthless as expiration is less than two weeks away, but I'll take money now instead of later.

Trade that got away: I almost bought a March 10 put for American Express, AXPOB. I had a limit order in for $.30 at the end of the day but canceled it at the last moment. Sigh, I still think it would have been a good trade. I'm sure I'll be kicking myself next week. The way I look at it, better to have not made money than to lose money.