Blowing Up

Another up day for the markets and my portfolio. Not really sure how many days in a row I have posted a positive number, but I'm not going to complain.

DOW up 90.88
S&P 500 up 16.23
Portfolio up $3,710.48

I had one trade today. I closed out my short of MS. MSCI (March 26 call) for $.20 like an idiot. I really should have just let it ran as option expiration is this week, but I got scared when MS went on a tear late in the afternoon. A textbook short squeeze that I fell for. MSCI closed at $.11 just 55 minutes later at the close. The good news is that I sold this short at $.45 so I had a $.25 gain per share minus all the commission costs. Locking in a profit is nice so I won't complain.

Remember my BYODH play? I bought 10 contracts of this April 8 call for BAC @ $.46. With BAC moving over 22.3% today, this trade moved 120% today to $1.10. I'm up 128.93% as of right now with all 10 contracts still out there. I was actually thinking of closing out half the position and locking in my gains at $1.10 which would have given me all of my initial outlay back plus some profit, but I decided against that idea and let it run. Like I've posted earlier, I honestly plan to make at least 500% on this trade. Lets see if I can do it.

My WBAAH option moved over 33% today which means I'm only down -83.21% on this trade. Yay!!!

On another note. The fed had their meeting today and the notes came out that they are leaving interest rates alone but are going to start buying back treasuries. This move is going to inflate the balance sheet to an enormous size which is probably going to kill the dollar and invoke an inflationary environment in the future (near future). The good news is that the benchmark rate is hanging out at a paltry 25 basis points which will allow the fed to swoop in and raise this whenever inflation rears its ugly head.

This was good news for gold which was down over $20 in the day. High inflation and a weak dollars are both great for gold and you could see this with it going up $30 by the close of the day (a huge $50 intraday swing) .

So what is the Luigi suggestion of the day? Inflation is going to help skyrocket the market. Go long whenever you feel comfortable. Buy the financials. Stay away from Gold. Gold is for idiots.