What an incredible short squeeze. The markets gapped open higher, traded back down to close the gap and just took off in the final 2 hours. It incredible to compare yesterday's close to today's. I only managed to hop onto MS for $1.00 profit late in the day. I'll look for a retracement in the AM to initiate some long positions.
BTW, I was speaking to my boss today about her retirement portfolio which is in the shits. I know most of you readers are "traders" but just in case you have a nest egg somewhere that has taken a blow, now is NOT the time to diversify. This may just be a bear rally and we may even go back down(doubtful) tomorrow. However, with this volatility, I think you're better off taking your portfolio and stalking a stock or two that can get you 20-50% on a short-covering rally like today (i.e., CLF, X, CF, SSO). For instance, FNM picked up 16% today and was at $1.90 at the beginning of October. The government has already committed to supporting FNM/FRE so what is the downside. If my nest egg was down 50% , I'd have a higher chance of seeing FNM go to $1.20 to pick up the 50% than wait on a diversied portofolio that may never recover to its value 1 month ago. Anyways, this is NOT a recommendation...just a different perspective for the longer-term trader/investor. Now is not the time to be loyal to those schmucks that have been taking regular fees from your accounts with no consequences when they lose your money. It kills me to see my friends/co-workers entrust their retirement money to money managers that have no experience trading and have only ridden the coat-tails of the recent bull market.
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