Best 4 days in a row in the stock market in a long time.
I was very, very pleased to see the markets rise again today for a 4th straight day. I find myself wrestling with my Ego here wanting to say it was inevitable, given my earlier premise that Wall St. wants the consumer to forget about their stock portfolio's and go shopping. But on the other hand just happy I was able to point the way for some to make money this week. It was the best week in a long time.
Here's what I did today. I wanted to report that I sold my Ultra Pro ETF shares, symbol, SSO, for average price of $25.10/share. These are the shares bought at $19.35, so I have a lot to be thankful for a 24% profit in less than a week. Also I purchased 20,000 more shares of Ford Motor Co. at the open for $1.70. And lastly, I was able to buy the ETF Ultra Short of the S&P 500, symbol SDS, for $90.50/share. The idea here is that if the market drops next week due to very poor Retail Sales, I will make money on these shares. These are the same shares I bought at $88/share and sold at $118 last Thursday. The idea here being to make another round trip if the market goes down.
With the additional major news item of the day being a terrorist attack in India, the markets have a lot of pressure to go down next week. On Friday, you might consider buying this same ETF, symbol SDS. The Dow closed at 8,726 today. If you believe we are in a trading range and most likely will stay in that band, then playing it to your advantage is important. I believe the top of that band on the Dow is about 9,500 and the bottom is at 7,000, the half way point is 8,250 and we are above that point. That would mean there is better than a 50% chance we will pull back some. However, we are not that much above the mid point so it can just as easily continue up for a few days but we are still just below the 20 day Moving Average on the Dow and S&P 500. What I do in that case is to start buying 1/3 of the total shares I want to purchase of SDS at $90/share and buy 1/3 more at $88 and another 1/3 at $86/share.
Happy Thanksgiving.
Here's what I did today. I wanted to report that I sold my Ultra Pro ETF shares, symbol, SSO, for average price of $25.10/share. These are the shares bought at $19.35, so I have a lot to be thankful for a 24% profit in less than a week. Also I purchased 20,000 more shares of Ford Motor Co. at the open for $1.70. And lastly, I was able to buy the ETF Ultra Short of the S&P 500, symbol SDS, for $90.50/share. The idea here is that if the market drops next week due to very poor Retail Sales, I will make money on these shares. These are the same shares I bought at $88/share and sold at $118 last Thursday. The idea here being to make another round trip if the market goes down.
With the additional major news item of the day being a terrorist attack in India, the markets have a lot of pressure to go down next week. On Friday, you might consider buying this same ETF, symbol SDS. The Dow closed at 8,726 today. If you believe we are in a trading range and most likely will stay in that band, then playing it to your advantage is important. I believe the top of that band on the Dow is about 9,500 and the bottom is at 7,000, the half way point is 8,250 and we are above that point. That would mean there is better than a 50% chance we will pull back some. However, we are not that much above the mid point so it can just as easily continue up for a few days but we are still just below the 20 day Moving Average on the Dow and S&P 500. What I do in that case is to start buying 1/3 of the total shares I want to purchase of SDS at $90/share and buy 1/3 more at $88 and another 1/3 at $86/share.
Happy Thanksgiving.
Labels: Dow, ETF's, Ford Motor Co., make money, Wall St.
posted by Charles Amico at 5:15 PM
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