finance and economics

The Bully in oil is back! GDP really hurt the optimistic vibe on the stock market but Fed’s have positive attitude.

I see ENERGY being bullish.  It had 2 big pull backs and recently with the Fed’s notes saying Energy is still profitable with current inflation oil should go back up including gas prices.  Technically it also shows a broken downward trend creating 3 white soldier candles up.  Companies you can note that have really been bought up at lower prices are SWN, EOG, and OIH.  OIH expecially has ran from $120 to now $138!  You are probably thinking that is a huge move and money will be taken off the table which it will, but I believe its only up half way.  If oil is now bullish and with Fed backing it up to still be profitable investors buying back in OIH will go back up to $150-160 range still leaving a large margin profitable for any option trading investor.  I plan to get back into OIH once I am out of two of my biggest trades ever.  I could be totally wrong about them, but I am willing to take that type of gun slinger chance.  I am in my biggest position AMAT with 650 JAN $22.5 CALLS.  Yes, call me crazy because I am.  AMAT earnings is November 15, 2006.  I plan to sell out before earnings if my sell price is executed if it isn’t I do not have anything to lose since the option is currently today worth $0.  But if I am write it will be around a $18,000 profit for holding the option for 1 month.  Simular circumstances with MSO 300 contracts for DEC 30 CALLS.  I really believe in Martha Stewart Living.  MSO will be the next company story even if they don’t beat earnings because they are still growing again I know they will surprise anaylst and investors creating upward movement in the stock enough to profit me another $30,000.  MSO earnings are Oct 31.  Only 2 trading days away!  If I’m wrong then I’m wrong.  No biggie.  Yes its a big loss, but I look at it as making an educated guess with research and facts and conviction that I believe it will go up in price.  Plus Martha Steward herself is the bomb (cool).   Even though she isn’t CEO anymore she means business and not any business but quality products and services in her business and that is what will make her company come alive again and become profitable.

As for the GDP saying it slowed down the company very much if you read into it you will notice the public already knew this.  Fed Bernake said it would be -1.1% less because of the hit in the housing market.  It was already pre-known which is a good example that this is just a minor pull-back.  I believe the market can go down for the next couple of days because of the scare, but the Fed’s said it is a positive “soft landing” and we are getting great better than expected earnings from major corporate companies.

My mother told me about her GOOGLE.com (GOOG) play she was in.   She believes it will goto $550 and I do too.  I only don’t trade it because the options are as much as a stock price.  I like to trade options priced $1 to $8.  I’m currently in many options trading under $1 and that is bad.  I’m only trading way out of the money because I bought time and letting the stock move up all the way before its earnings release.  For some stocks I have traded through earnings like Apple Computer (AAPL).  Anyway about GOOG.  She was up $800 today and could of sold out but didn’t.  She is right by telling me to sell out of my position up $6000 and I didn’t when I could of this morning.  I feel I trade better if I just wait for the stock to do its “own thing” and be patient if I am confident the company is doing well and is going to beat earnings (before its earnings).  In this case the stock options were GRMN 60 NOV Calls which only have 20 days left and now only up $2850.  I’m sure you are saying sell sell sell!  I have a conviction and confidence that Garmin will hit $70 before Nov 31th and I better be right.  It’s earnings is Nov 1st.  Only 3 market days away starting next week.   GRMN has already been upgraded by 2 major anaylst.  It took a big 4% hit today with GDP news.  Bummer for me.  The past 2 mondays have been bullish instead of mixed.  With this nervous GDP report this monday could definitely be mixed which wouldn’t help me out wanting to sell GRMN by Oct 31st.  I plan on holding my options through earnings and selling the next day either immediately at a profit or loss (if uptick after hours trading then sell at opening high bid where I should be still profitable).

Well that’s enough on trading stock options today.  I’ll blog next week after both earnings annoucements on MSO and GRMN.  I guess should be getting anxious and stressed out but I’m really not.  Every bit of money I put into my account to trade is money I’ve saved with extreme measures.  You have no idea how extreme.  I shall go into extreme saving money ideas in another blog on another day.  I put my money in there and if I lose it all I positively know I can make it all back on a couple hundred dollars.  I’m know expert and I’m not even really that good a trader yet, but I feel I can adapt to stocks real quick and understand where they are short-term going.

I also wanted to point out Starbucks (SBUX) is just popping up EVERYWHERE.  When they meant they were growing double the amount of stores this year they were SERIOUS.  In Hawaii SBUX is a regular shop in every strip and people go there like mad crazy to get their “fix” to make them feel happy.  It’s a company I’m seriously interested in buying super long calls on that could possible be my biggest contract trade ever.

 Later – Paul


CNN Money Article on saving money for retirement.

I received this news article from a co-worker of mine and thought it was very significant because its content lines right up with my opinions on consumer spending and saving.

Basically a person with a smaller income can still save more then a person with a larger income just because they spend less and save more.  Read it for yoursefl.

CNNMoney.com News:  “What works: Your worst enemy…overspending”

By: Penelope Wang

http://money.cnn.com/2006/09/07/pf/retirement/retire0610_whatworks_hartmann.moneymag/index.htm

In my own life I can see this with my friends earning more then me, but they want to spend and buy a sports car, new furniture, and have their own place instead of sharing.  Just by owning your car with no payment you are saving $100-500, sharing as a roommate instead of having your own place saves your $300-1000, and buying or getting used furniture could save your hundreds if not a couple thousands.  I know its personal choice, luxury, and enjoyment.  Can’t you have just a good time driving a regular car, or sitting on a used piece of furniture.  Having a bran new furniture set doesn’t make it come alive and talk to you does it?  I don’t think so.  Sure, comfort, you want it but you still can have it being more on a budget and finding a reasonable simular piece of furniture cheaper would help you save in the long run.  As with expensive cars comes higher insurance just another thing to think about when spending your paycheck.

In the article stated above they are earning a sweet income, but if with a $20,000 to $40,000 yearly income you can save just as much.

 I factor variables like (for males and females):

1. Do you have a boyfriend, girlfriend, or are you married?

2. Do you own or do you rent or which is cheaper?

3. Do you own your car, leased, or have a loan on it?  What’s the insurance?

4. Do you eat out a lot, binge drinkers, or like to go out a lot on the weekends?

5. Do you play sports?  Because most sports are free.

6. Do you have credit cards and how much is on them?

The above questions can help you budget your money better and plan for retirement.  Yes, people change, you get married, you have babies, and now you have a hospital bills because you don’t have health insurance.  I understand that, but if right now you are young, healthy, and able to work then now is the time to earn and save the most you will ever be able to.

Think about how much you spend in your current lifestyle.  If you can makes changes you’ll be saving probably 25-50% of your paycheck and be blown away when you see your savings account start stacking up like gold inventory as in the Federal Reserve in NYC, NY.


Pay day is my favorite day. Don’t let your hard earned money slip away!

In the military just as in the corporate world we are basically paid twice a month.  The 1st and the 15th.  As a previous pizza delivery driver those days were the best to make money on.  Some drivers would just only work on those days because tips are better because people are paid.  Now I am going to talk about saving your hard earning pay day money.  Creating some type of budget if it be in your head or in a planner book.  You need to know what you can and can not spend because if you don’t how much free money you can have to spend you will end up with nothing left to save until your next check.  Many people live paycheck to paycheck.  It has even happened to me when I was very young.  At a certain point I just understood the meaning of money and the bigger vision of keeping more of it would get me ahead in the future.  Try to save at least 25% of your income.  Currently I earn around $3000/m after taxes.  Not a lot for living in Hawaii, but enough to be about to save at least 35% or $1000/m to invest with.  My ideal thinking is to invest everything I can into stock market options.  At some point I am going to be very right.  I have been actively studying the stock market for over 10 years and just recently stock options for the past 2 years.  I’ve learned a lot and I’m starting to trade smarter from doing mistakes I’ve already been taught not to do.  I can’t say I am much of a rebel, but everyone at some point is a child and you are going to get spanked hard by one play or another to teach you a big lesson.  Sometimes loosing so much money in the market can be a very huge motivating push that can help you go from rags to riches. 

Now back to pay day.  If you are going to be better off the next month you need to have it in the bank.  Call it saving for an emergency or cushion money or even money you are willing to give up for a bigger vision of your future.  Yes, I have lost money in the market.  I’m working on making my losses small and my profits larger.  For every person that is loosing money there is someone or some investment firm making it and I want to become that person that profits.  I know what you are thinking.  No way I want to loose money in the stock market and you are right.  You need to study and have conviction about when you trade know absolutely your trade is going to work.  If you don’t feel the stock market is your veichle for future cash flow then consider saving around $5000 and buying a condo or small house (getting 100% loan financed only paying closing costs).  I bought a small home and receive $725/m rental income from it with a $653 mortgage.  Not much rental income but owning it pays off HUGE with my yearly taxes receiving more paid out money and I can say I own something. 

I hear many people say they want to take some money from their paycheck and invest it in bank deposits and bonds.  Personally I just don’t think you make enough for your money just sitting there, but if you don’t believe in a little more risk creates a much bigger return then do it.  I just hope I can motivate a person to save money.  Everybody just seems to spend it all then they think I’m rich because I don’t spend mine.  It’s choice, you’ve got it and so do I so use it and think long-term with a short-term money management style to create more choices for you and your family long-term.

 Here’s a story of my parents.  I remember as a child listening to WHRO 90.3’s 5 P.M. wall street radio broadcast of the Dow Jones Industrial Averages and Nasdaq Monday through Friday.  My parents would invest $50 a month into 1 local company every month and did this for years.  12 years later with around $8,000 saved from buying 1 to 2 stocks to equal $50/m now they have the choice to help them buy their dream home, a new car, help pay for college, use for medical, or just keep investing.  This is the power of saving and investing even as little as $50/month.  My parents never made much money probably together less than $30,000 a year having 4 children.  We lived in a small town-home, ate crockpot soups, rice, and simple meals rarely getting fastfood or deliveried pizzas and really never going out to a resturant.  We sacrificed a lot of luxuries, but I feel as a family we were happy.  Christmas was never expensive because we always found it fun to buy a million gifts from the dollar store.  Sure it sounds ghetto?  It isn’t.  My parents made an attempt to buy us each at least one nice gift whether it be some new clothes, a bike, or something we needed not necessarly something we wanted.

 Remember a small sacrifice to start saving your money can pay off big when you need it most so start now.


My first blog inspired by other financial bloggers aimed to help individuals learn how to increase their goals to a faster retirement.

Hi.  I’m Paul Meyer and will be writing this blog under the name Finance Ninja.  I thought up the name fighting between Money Kung Fu and my cyberspace nerd name elektrowhiteboy.  I’m an ordinary big nerd.  I think up the craziest things to say, do, and help people with.  I am great at saving and creating ways to make money.  So I thought Finance Ninja was the best general name for this blog I’m going to pour my heart and soul into.  Unlike other financial wisdom bloggers I am going to go down other dark roads to help you learn more about the power of money.  Money can help you or destroy you, and you really need to choose right now in your life what it will be.

 I am currently in the United States Coast Guard serving a 4 year term with around 3 years and two months left at this point.  I’m very confident in my decision in join the USCG to save money, surf more waves, and live in a fresh new place.  To make a comment on that you can move anywhere, but you will always be the same person inside so lets find out really who you are and help you manage your money more efficiently.

 My name is Paul.  I have an addiction and it is saving money.