Thursday, May 17, 2012

All things bankster (updated 12:30 am)

4:58 am (Hawaii) Even without making another trade, I find it fascinating, a bit scary and definitely entertaining that the common man in Greece — and now Spain — is taking his and her hard-earned money out of the banks there. The banks can lie to us forever, but how long can we keep believing them?

Update 6:11 am Back in FAZ 25.75. Wish I'd gotten back in at 25.25, but played it safe. Price consolidated for awhile (ie about an hour?) before it jumped at noon Eastern time. Now at 27.24. Put in a stop loss right away and have raised it twice. TZA (3x Small Cap Bear) is interesting too but I'm late on that).

Update 6:21 am Stopped out of FAZ at 27.05 (+0.30/share). Pros and cons of stop loss on a play that has done nothing but go up for the past week. (I had it at 22.88 just a few days ago, sold it too soon.) But FAZ will swing and swing and swing. That is a guarantee. Now at 26.98. Will re-enter at a lower price. Or not.

Update 7:23 am Back in FAZ at 26.82. Stop loss in place. A drop from here to the bell would be the end of a daily streak that takes the price higher from morning/mid-day to close. A lot of "tweezer" candles (as StockGuy22 would say) on the 3-min chart. Not promising.

Update 7:43 am FAZ at 27.00, raised my stop loss. CNBC reports that Fitch has downgraded Greece again.

Update 8:41 am FAZ hit 27.32, high for today. Raised my stop loss again. Debating whether to hold overnight, but price action will dictate before I get to decide, probably.

Update 9:08 am Almost got stopped out of FAZ again, but since it has exploded from the 27.18 area to 27.34 (again). It was tempting to get more shares but I'm comfortable with this position size. Can't make it all back in one swing.

Update 10:08 am Holding FAZ for now. It hovered around 27.70 near the close, then jumped to 27.80 at the bell and is above 27.90 after hours. No question the banksters are shorting themselves and will ride all financial bear ETFs until the money printing machines start humming again. Decided against adding more FAZ (or starting a position in TZA). Stop loss still in place after raising it several times. Giving it more room than usual. Still leery about holding this overnight.

Dow Jones -156 (-1.2%), Nasdaq -60 (-2.1%), S&P 500 -19.94 (-1.5%).

Is this bloodbath the market has "needed"? Or is there more to come? Facebook IPO has priced at 38.

SPY is still positive year to date. JPM closed at 34.05; it opened the new year at 34.06. How close is the market to getting stimulus? All the puppeteers are former bankers or ex-banking lobbyists, Obama needs bankster funding for his campaign, and it's an election year. It's a matter of when, not if, stimulus kicks in.

Update 12:30 pm Chickened out, sold FAZ after hours at 27.54 (+0.72/share). That's well off the high of the day (27.92) and I had plenty of opportunity to sell after the bell when it jumped above 27.80. But by then I started thinking seriously about holding overnight. But I can't do it. It's psychology. If I was making a big profit this year, this would feel like house money I'd be risking. But with the earlier loss today on GSVC, I feel obliged to make up for it. This sale of FAZ covers more than half of that loss. (Though if I'd sold at 27.90, that would've almost made up for the entire loss.)

After hours, the first plan was to hold the FAZ position and a stop loss order at 27.60 (good until cancelled). But as they moved the price into the 27.80s and 27.70s, I thought about selling right there instead. When it dropped to 27.60, that rang bells. Europe will probably be fugly in the morning with bad news and nothing good will come from JPMorgan. But after 11 down days out of 12 in the indices, plus Facebook's IPO, I prefer to stand aside and wait for the next opportunity than risk losing the profit.

Damn I'm a chickenshit!

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