***Official*** 2009 Stock Market Thread

[ponyo]

Originally posted by: maddogchen

Originally posted by: Naustica
Bought some FAS (3x long financial) @ $3.27. Little placeholder in case suspension of M2M gains traction.

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

Because if we rally, group that's most beaten down will snap back the hardest. Rally plus suspension of marked to market rule could cause upside explosion in the financial names. So far I'm wrong but I'm not giving up yet.

Same reason I'm eying GE and WFC. I want to take big positions in both but I'm debating if I should use stock, calls, or combination of both. I don't think GE is going down without a fight and will bounce to teens if we rally. They will defend icon like GE.

 

[ivan2]

looking at the SEC filing this HERNANDEZ ROBERTO dude at citigroup's law department bought 6 million shares of common stock at 1.25... they are definitely anticipating something.

 

[GTKeeper]

Originally posted by: ivan2
looking at the SEC filing this HERNANDEZ ROBERTO dude at citigroup's law department bought 6 million shares of common stock at 1.25... they are definitely anticipating something.

Why trade in penny stocks? People see a name like Citigroup and think they are getting a steal at 1. Its a lottery and the company is INSOLVENT.

 

[JS80]

Originally posted by: maddogchen

Originally posted by: Naustica
Bought some FAS (3x long financial) @ $3.27. Little placeholder in case suspension of M2M gains traction.

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

cuz they both like to gamble

 

[JS80]

Originally posted by: IHateMyJob2004

Originally posted by: GTKeeper

Originally posted by: IHateMyJob2004

The irony of course is that you don't know what these companies are worth either, but you are actively shorting. Enjoy your taxes on what gains you do get and the losses that will wipe you out. Further irony is rooted in the fact that you are as greedy as the bankers that caused all of this mess.

I am not greedy. My 401k became a 201k over the last year because I was stupid enough to trust my adviser. I am playing with money I can totally afford to lose.

The real irony is that you are telling me that by looking at a balance sheet I can judge the health of a financial company well. That is a pipe dream at the moment. Uncertainty in a bear market is a short play not a long play. Until the gov't gets all these CDSs on an exchange we will continue having the crap we are having right now.

FYI: BAC just a week or two ago stated that they don't see the need to borrow more bailout money.

Never trust words that come out of the horses mouth. Look at how many financial are saying 'we are not cutting the div, not cutting the div, not cutting the div' woops we cut the div. That is flat out LYING. The market will not tolerate liars. Go ahead and go long on C and BAC and WFC see where you are 1 year from now.

1 year from now? 1 year is a crap shoot in any economy. How about 3? Let's see where BAC and WFC are in 3 years (although2 years should be good enough). I will not speak for C. BAC and WFC will have record market caps in 5 years. It is only a matter of how diluted the shares become.

I don't believe a word out of the mouths of executives in most cases, but when USB speaks, they say they cut the dividend, why it was cut and that when this crisis ends and earnings stabilize, they will re-establish a more significant dividend.

how are your sack of turds? are you dollar cost averaging? lulz

 

[ponyo]

bought some GE April $7 calls for $1.21. I'm aware tape that tend to be heavy tend to close at the low but I'm starting to scale in. If we get heavy low close and get the scary Black Friday or Monday open, S&P could hit my 600 target where I'm jumping in with both feet. I'm saving some powder for that.

 

[ponyo]

added more FAS @ 2.91

 

[JS80]

Originally posted by: Naustica
added more FAS @ 2.91

i gotta say you got huge ballz

 

[Ricochet]

Wow! Where is the next support level? After 8k there has not been one since.

 

[hiromizu]

Originally posted by: ricochet
Wow! Where is the next support level? After 8k there has not been one since.

Jesus. There's no such thing, never was. Not in my opinion anyway.

 

[GTKeeper]

Originally posted by: ricochet
Wow! Where is the next support level? After 8k there has not been one since.

In the 5000s

 

[Mark R]

Originally posted by: maddogchen

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

Because FAS is like a casino - you buy a day or two before you think the market is going to go up, then you sell - and these guys like to gamble. FAS/FAZ and the related funds are easy to use gambling tools - they are not investments.

You should check that your Dad knows this. FAS cannot be held for any length of time because it bleeds value at a terrifying rate. E.g. FAS has slipped 5% with respect to the market in the last week (by that, if you bought 1000 shares of FAS last Thursday (theoretically equivalent to 715 shares of XLF@$8.13 at that time), today you would require XLF to rise to a minimum of $8.55 in order to break even). In other words, while FAS has lost 53% of its value in the last week, 15% of that loss is expenses, and won't be recouped as the market rises.

 

[ultimatebob]

CAB seems to be doing pretty good... thanks to all of those gun nuts who are hording semi-auto rifles and ammo since Obama got elected.

It's the only original pick in my Marketocracy portfolio that's positive right now!

 

[imported_Lothar]

Originally posted by: Mark R

Originally posted by: maddogchen

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

Because FAS is like a casino - you buy a day or two before you think the market is going to go up, then you sell - and these guys like to gamble. FAS/FAZ and the related funds are easy to use gambling tools - they are not investments.

You should check that your Dad knows this. FAS cannot be held for any length of time because it bleeds value at a terrifying rate. E.g. FAS has slipped 5% with respect to the market in the last week (by that, if you bought 1000 shares of FAS last Thursday (theoretically equivalent to 715 shares of XLF@$8.13 at that time), today you would require XLF to rise to a minimum of $8.55 in order to break even). In other words, while FAS has lost 53% of its value in the last week, 15% of that loss is expenses, and won't be recouped as the market rises.

I was coming here to post just this.
You saved me a lot of time from doing any calculations or explanations.

You explained it much better than I ever could.

 

[ponyo]

Wells cuts dividend 85%. Welcome to the party. Glad you could finally join. Took you long enough. :laugh:

All the negativity I see and read just makes me more bullish. Bring on more fear and doom and gloom so I can deploy more of my capital.

 

[DeadByDawn]

Originally posted by: Lothar

Originally posted by: Mark R

Originally posted by: maddogchen

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

Because FAS is like a casino - you buy a day or two before you think the market is going to go up, then you sell - and these guys like to gamble. FAS/FAZ and the related funds are easy to use gambling tools - they are not investments.

You should check that your Dad knows this. FAS cannot be held for any length of time because it bleeds value at a terrifying rate. E.g. FAS has slipped 5% with respect to the market in the last week (by that, if you bought 1000 shares of FAS last Thursday (theoretically equivalent to 715 shares of XLF@$8.13 at that time), today you would require XLF to rise to a minimum of $8.55 in order to break even). In other words, while FAS has lost 53% of its value in the last week, 15% of that loss is expenses, and won't be recouped as the market rises.

I was coming here to post just this.
You saved me a lot of time from doing any calculations or explanations.

You explained it much better than I ever could.

Also another example is SKF which has been around longer. Look at it compared to IYF, some serious decay since inception.

 

[ponyo]

Originally posted by: Lothar

Originally posted by: Mark R

Originally posted by: maddogchen

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

Because FAS is like a casino - you buy a day or two before you think the market is going to go up, then you sell - and these guys like to gamble. FAS/FAZ and the related funds are easy to use gambling tools - they are not investments.

You should check that your Dad knows this. FAS cannot be held for any length of time because it bleeds value at a terrifying rate. E.g. FAS has slipped 5% with respect to the market in the last week (by that, if you bought 1000 shares of FAS last Thursday (theoretically equivalent to 715 shares of XLF@$8.13 at that time), today you would require XLF to rise to a minimum of $8.55 in order to break even). In other words, while FAS has lost 53% of its value in the last week, 15% of that loss is expenses, and won't be recouped as the market rises.

I was coming here to post just this.
You saved me a lot of time from doing any calculations or explanations.

You explained it much better than I ever could.

I know very well about the risk of holding ultra ETFs for more than few days. JS80 and I posted in another thread on P&N about the very same thing couple days ago.

 

[imported_Lothar]

Originally posted by: Naustica

Originally posted by: Lothar

Originally posted by: Mark R

Originally posted by: maddogchen

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

Because FAS is like a casino - you buy a day or two before you think the market is going to go up, then you sell - and these guys like to gamble. FAS/FAZ and the related funds are easy to use gambling tools - they are not investments.

You should check that your Dad knows this. FAS cannot be held for any length of time because it bleeds value at a terrifying rate. E.g. FAS has slipped 5% with respect to the market in the last week (by that, if you bought 1000 shares of FAS last Thursday (theoretically equivalent to 715 shares of XLF@$8.13 at that time), today you would require XLF to rise to a minimum of $8.55 in order to break even). In other words, while FAS has lost 53% of its value in the last week, 15% of that loss is expenses, and won't be recouped as the market rises.

I was coming here to post just this.
You saved me a lot of time from doing any calculations or explanations.

You explained it much better than I ever could.

I know very well about the risk of holding ultra ETFs for more than few days. JS80 and I posted in another thread on P&N about the very same thing couple days ago.

I'm just making sure people know what they're getting into.

When I did my own math, those "double bear", "double bull", "triple bear", etc... ETF's seems to be nothing more than a ponzi scheme(I had to throw that one in there seems it seems to be a common word nowadays).

 

[maddogchen]

Originally posted by: Mark R

Originally posted by: maddogchen

why did you buy FAS specifically? My dad bought that too. I told him I thought he was being risky with his retirement money in an attempt to win his money back.

Because FAS is like a casino - you buy a day or two before you think the market is going to go up, then you sell - and these guys like to gamble. FAS/FAZ and the related funds are easy to use gambling tools - they are not investments.

You should check that your Dad knows this. FAS cannot be held for any length of time because it bleeds value at a terrifying rate. E.g. FAS has slipped 5% with respect to the market in the last week (by that, if you bought 1000 shares of FAS last Thursday (theoretically equivalent to 715 shares of XLF@$8.13 at that time), today you would require XLF to rise to a minimum of $8.55 in order to break even). In other words, while FAS has lost 53% of its value in the last week, 15% of that loss is expenses, and won't be recouped as the market rises.

Thanks for the info! I'll see if my dad knows.

 

[masterxfob]

after gaining about 30% last year, this year i'm down 20% from my original investment. i didn't anticipate the market going this low, and the scary thing is that it might go even lower. sorry guys, but i'm going to wait on the sidelines until some better news starts coming around.

 

[Blueychan]

RMBS dropped to 7.84 after a small rally on the 4th. With the Market dropping like a rock, I guess people are not too confident even with the good news. They want to see the money. I plan to buy more RMBS early Monday morning at 7ish. Hopefully they'll settle soon.

 

[zimu]

this stem cell turnaround that'll be probably announced on monday is the best thing that's happened to me i bought a crap load of ACTC some time ago at .11 if i recall... other stem cell companies went up 60-80% in after hours on friday, i expect actc to shoot up! even if it goes up to .2 i recover all my rmbs stock, essentially meaning i'm back at square 1 but have heaps of stock with what i still think is good potential. woohoo!

also have stock in msft and frpt, those are more longer term, don't plan on touching that any time soon.

 

[GTKeeper]

Originally posted by: zimu
this stem cell turnaround that'll be probably announced on monday is the best thing that's happened to me i bought a crap load of ACTC some time ago at .11 if i recall... other stem cell companies went up 60-80% in after hours on friday, i expect actc to shoot up! even if it goes up to .2 i recover all my rmbs stock, essentially meaning i'm back at square 1 but have heaps of stock with what i still think is good potential. woohoo!

also have stock in msft and frpt, those are more longer term, don't plan on touching that any time soon.

Congrats, up 80%+

 

[ponyo]

Banking Index is up 5.3% and FAS (3x Financial) is up 3.2% I'm losing patience with this dog. It will be gone by end of the week if not sooner regardless. I put it on for some exposure for the mark-to-market meeting this Thursday and when the catalyst is gone, so will this dog. I should've slapped on some Wells Fargo instead. I added some GE commons to go with the calls.

 

[IHateMyJob2004]

Originally posted by: Naustica
Banking Index is up 5.3% and FAS (3x Financial) is up 3.2% I'm losing patience with this dog. It will be gone by end of the week if not sooner regardless. I put it on for some exposure for the mark-to-market meeting this Thursday and when the catalyst is gone, so will this dog. I should've slapped on some Wells Fargo instead. I added some GE commons to go with the calls.

Buffet said he was adding WFC to his personal account several months ago for just over $20. You have time to buy at a discount to WEBs implied value (probably $25+)