Friday, November 2, 2007

Trading notes, post Fed reaction

Although the Fed cut rates on Wed 10/31 and watching the Dow rise 130 points, the following Thursday saw the financials such as MER and C lead the market down as the Dow dropped 360 points.

Today, the market is down about 40 points and the only watchlist stocks that are up are GOOG and BIDU, unfortunately I have no position in any.

The SKF or double short financials has rallied about seventeen points from the initial watch point but we didn't take advantage of it because at the time, the trend of general conditions did not favor the trade until yesterday. Now we are in the conundrum of whether to buy it 20% higher than it was.

Thankfully we only gave back half of Wednesday's gains and our concentrated portfolio has weathered the storm. However, I haven't made any new buys, sells, or shorts.

I am tempted to take that long CSCO trade at the close on Tue, Nov 6. Will take another look at it to see if I'll go 200 shares to play a positive reaction.

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