Thursday, September 18, 2008

Add some financials

Last few days, lot of things happened in the market! VIX hit 42 today before closed down at 33.
  1. I sold some WNR and bought some XLF close to the low of the day.
  2. I bought some MS, just bet they'd survive, and when it dived to 11.7, I almost wanted to take the money back. When it quickly bounced, I added a little more. Then, when the news came out, it's a 4% jump in general market and MS finished in green! Now, I wish I would be a little brave and buy more. But, what do I know, I could get killed like LEH holder. It's purely speculative play, small is good!
  3. And looks like SEC will ban short sellers for some time, maybe until election? I think that's good for the market, since we're on the verge of total collapse. But I prefer "up tick" rule over banning short selling, and naked short should be banned. But short should be legal and shorts keep companies honest!
  4. On the other hand, last time I checked, WNR has 31% short and TSO has 20%. These heavily shorted stocks should do well in this environment. Since TSO and WNR are more than 70% off high, they may have a strong bounce.
  5. I hope this rally will last, but be careful out there and don't be greedy.

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