market still confused what to do…this week call practice plays only -20%. bailout plan a success? wall st. doesn’t think so.
my call practice plays probably would have done better the day after but i was busy. what happens when you are busy a miss 2 days in the market? more losses for not paying attention. i still had only -20% which still isn’t bad compared to my overall picks and total sum profit %.
i figured the stock market would tank after the final decision has been made on the bailout plan. i didn’t think it would really make a big difference, though if wall street did favor the bill it should have made the market jump higher. so now that the market has fallen, complete opposite of what the news told us, now we are heading into a real october crash. it’s already in pure downward spiral, but will likely dive even deeper. what a mess for a new president. i was for Palin for a long time. well, she’s just freaken hot there i said it, but Obama is the right choice.
here are my call practice plays 9/3 – 10/3 sept/oct end of month.
as you can see it was about 50/50. energy still seems to be bright and wells fargo buying wachovia helped make a big move. wachovia’s a great bank. i wouldn’t be surprised to see it go back to $20-30 once it starts running properly again or make wells fargo worth more. i’m sure citi bank is having a fiss over this only offering $2 billion and wachovia opted out of it. i’m sure there will be hassles over legal issues between all three banks. i’m sure its just a power trip.
after -777pt DJIA drop predictable “sold off” rebound begins
I didn’t even realize how low stocks sold off until I saw today before the open. I would have traded short-term like 1 day in/out call options on them especially the good stocks. But if you watched GOOG today it dropped again to all new lows. Scary. Very scary, but awesome at the same time if you were playing intraday put options on it. I’ve noticed in my optionsxpress account now whenever I am looking at financial stocks basically all of them say “no short selling allowed”. They are really starting to protect companies too much. If a trader is short selling a company then he is betting on the company falling for good reasons. In the real free markets there should be short selling. If the trader is wrong he’ll lose all his money so the trader must no something.
Although I expect the market to continue falling I can bet the market with such a large drop and even a large come back +5% across the board on indexes will move up one more day before they continue you to fall. Now that I think about it they may just rally into Thursday when the Senate votes on the bail. A great economic blog called Giving Up Control makes some real points about the bailout, congress, and wolves disguised in clothes.
Here are my call option plays for tomorrow:
practice call option trades
Paul Meyer 