Tuesday, November 25, 2008

Market does what is expected. Lucky guess again.

Ok, I think I got it right as we have had 3 days in a row of a positive uptick in the market. This is the first time since August. Unless tomorrow's Dow drops 1,000 points, we most likely will close the week up, which is what I predicted back on Friday and yesterday. Here's a check of my theory. How are you feeling now that the past 3 days have been positive in the market? Nervous it will drop? Happy it has gained ground? Hoping it will continue? You see most Americans are rooting for the market to rise, as there are few that want it to drop. If your mood is better, how will you be on the day after Thanksgiving, the most important day of the Christmas season for Retail Sales? I am hoping positive and that you consider spending a little money in thanks for what you have. Remember, it helps save jobs and can give you some joy if it is a present for someone you care about.

Those who purchased the Ultra Pro ETF of the S&P 500, symbol SSO, when I suggested and I did around $19.35, enjoyed the shares rising to a $24.37 at the close with a high for the day at $25.13. The gain so far is 25.8% For those who sold today, congrats on a nice gain.

I have an order in for the Ultra Short of the S&P 500, symbol SDS, at several prices: $90.50, $89.50, and $86.75 as a hedge for a market pullback.

Wanted to also wish everyone reading this Blog a very Happy Thanksgiving day and weekend.

Oh, I almost forgot that I wanted to tell you one other action I took and why I took it. I bought Ford Motor Co., symbol F, at $1.49 on Friday and Monday. Why you might ask. Because I believe that there will be a rescue plan for the auto industry and Ford is the stronger of the 3. Besides that stock is so cheap right now and 3 years from now when you look back you will be asking yourself why you didn't buy it here. That's my story and I'm sticking to it!

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1 Comments:

Anonymous Anonymous said...

Hi Charles-

A friend pointed me in your direction a few months ago and I have been reading/enjoying your blog ever since.

I have a question about today's post. Why three different buy orders for SDS? Does that mean you would by more as the market trends down? Did you also sell SSO or are you buying SDS as a hedge against a short term correction?

Thank you and keep up the good blog.

Graham

4:45 AM  

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