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Forum Post: How about that stock market!

Posted 12 years ago on Dec. 5, 2011, 1:07 p.m. EST by paulg5 (673)
This content is user submitted and not an official statement

Last friday they were predicting hell and damnation on all of Europe. Today Monday, Europe comes up smelling like a rose! Amazing what the media and the market can do, now see how many believers get burned this time!



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[-] 2 points by nucleus (3291) 12 years ago

You are cheering about the temporary result of another bailout?


[-] 1 points by paulg5 (673) 12 years ago

Crazy funny, from the sublime to the ridiculous. It reminds me of my favorite cartoon, road runner where the coyote is shot or hit in the head or something and he falls to the right, then left, and finally falls off a cliff. Well even going further back than that, playing with blocks you know how you'd stack one on the top of another until you couldn't go any higher without risking the whole thing tumbling over. I think the idea of whoever dies with the most toys wins doesn't apply anymore. So the sooner the blocks fall over the sooner we can start a new!

[-] 1 points by paulg5 (673) 12 years ago

"the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools"

Tools....Ummmmmm....... lemee guess...........Ahhhh printing press?

[-] 1 points by badconduct (550) 12 years ago

But on the other hand, the DOW is only up 48. That isn't huge.

[-] 1 points by badconduct (550) 12 years ago

Yes, good point. I put some money into gold mining mid last year, went up from .72 to a high of .98 some days. I'm also looking into CMI, which is Canadian. I'm not looking at investing into anything in the 30's and 40's, I don't have the excess capital yet.

[-] 1 points by Wealthy (20) 12 years ago

I did very well last week, FAS made a killing, still going up but I sold Friday, never look back on a profit. I'm buying FAZ this week, it's a financial bear ETF and allows huge moves when the market crashes, remember kiddies, FAS on good news, FAZ on bad news.

With these two stocks I don't really give a shit which way the market goes. :)

[-] 1 points by paulg5 (673) 12 years ago

Your killing me hear! the 52 week spread on FAS looks good! YTD doesn't look that hot on either...you must do a lot of baby sitting.

[-] 1 points by Wealthy (20) 12 years ago

It isn't a buy and hold situation, when the market goes up FAZ goes down, its a buy in the late 30s, market goes down, FAZ goes up and FAS is a buy in the mid, late 40s.

Another thing I've started doing since early November is granting options on them. I try to keep about 400-500 shares of each and selling options on some or all (depending) has been very lucrative. My tendency is to sell too early and leave money on the table but the options give me the discipline I've needed to optimize my returns.

LOL, don't get me going!

[-] 1 points by paulg5 (673) 12 years ago

Don't understand, 30s 40s, you mean dollar range? Leveraged Equity, wouldn't know how to manage, not enough info found on the net to risk. So you have earnings from the one on the up side while the other is building? I don't no anything about options, you sound like an advanced buyer!

[-] 1 points by Wealthy (20) 12 years ago

Well, options scare the shit our of me, condors, iron butterflies, Pink Floyds, it's all Greek to me. I sell covered options on stuff I own, that way I know exactly what my profit will be when I sell the option.

Last week i had sold 3 contracts of FAS @ a 58 dollar strike price (that's the price the buyer could take my stock) I was betting FAS wouldn't go over 58 last week but it closed at 62! So I got my stock taken but I owned it at 53 so I made the option premium (1.92 per share) and got the profit between 53 and 58. The downside is I have to wait until FAS crashes again before I can buy more so no option sales until then. The premium was close to 600 for the damn week.

It's like anything else Paul, it's taken me since Oct. '08 to get to the point I am now, that's studying it every day. What I've basically learned is the market goes up and the market goes down, usually for the silliest of reasons. But in that volatility I have found my niche. I play both sides with FAS and FAZ.

FAS is a financials based 3X Bull ETF that moves up in direct ratio with the Russell 500, in short, if the financial companies are having a good day, FAS goes up.

FAZ is a financials based 3X Bear ETF that goes up in direct ratio to the financials if they are having a bad day FAZ goes up and FAS goes down.

What makes the trades successful is buying properly. It truly is buy low and sell high but that really means I have to buy when the market is moving down and that's the hard part. Right this minute 37/38 dollars is a good buy on FAZ, 47/49 is a good buy on FAS, that may change next week.

But by concentrating all my trading efforts on just two stocks I begin to see a rhythm, I get a feel for when to buy and when to sell. There are many guys quietly sitting in front of a computer screen, trading their one or two stocks (always the volatility, the movement) and earning a living.

I'm not saying your original premise doesn't have merit, some people should not be trading baseball cards never mind stocks but a very average guy like me can do this with study. It takes effort but not as much as one might think. :)

[-] 1 points by paulg5 (673) 12 years ago

Is it the stocks you made a killing on, or the commissions?

[-] 1 points by Wealthy (20) 12 years ago

The stocks, I've been doing the FAS/FAZ trade for two years. If you anti-capitalists would do a DRIP (dividend reinvestment program) while you are young it would do you a lot more good than marching around. ATT and Verizon are paying around 6% dividends and the numbers get very Interesting when you compound that div over time.

It's sad that your professors spent more time on Marx than on the opportunities that are available every time you open your door.

[-] 2 points by paulg5 (673) 12 years ago

Oh really....please don't tell me about Verizon. I worked for that F_cker for 13 years. So they throw investors a bone once a year, what is it $1.38 a share. They treat their employees like shit. Anything that Verizon did for or gave to employees had to be fought for tooth and nail through the unions! And besides that the share value hardly ever changes it's been between 23 and 25.00 a share for years! When they spun off their directory business they saddled them with billions in debt...

[-] 1 points by Wealthy (20) 12 years ago

I've done very well with VZ, I bought at a low in '10 and it's been in profit ever since and that div pays like a slot machine. It's currently 2 bucks a year, just went up to 50 from 47.

A good friend of mine shares your disgust with the company, he crawled towers for 15 years and then got laid off. But he owns Verizon stock. You can fight the good fight for labor but never get emotional about those things. At the end of the day your future is yours to take care of.

Look at it this way, start a DRIP with Verizon and make the bastards pay you to sit on your ass. :)

[-] 1 points by paulg5 (673) 12 years ago

They have paid me to sit on my ass...oh yes. but pension is tied up until retirement age. I converted it to an annuity paying just 4.5% guaranteed fixed rate since 2009, had to roll it over quickly and at the time there wasn't many safe places. So eventually I'll have to find work for 5 to 7 more years, my emergency savings won't last forever!

[-] 1 points by paulg5 (673) 12 years ago

I think I'll go out and max out all my credit cards, who cares I don't have a job..... not my money! I'll buy 20,000 worth of christmas gifts and donate the rest to the local shelter, then I'll walk away from my house and live with relatives and leave no forwarding address!

[-] 1 points by paulg5 (673) 12 years ago

Listening to fox I'm getting all hot a sweaty, and I'm trying to contain myself from logging onto ETRADE! I think I'll put my last red cent into a new startup called


[-] 1 points by randart (498) 12 years ago

The troubles are behind you! Put all your remaining money into stocks and reap the coming rewards!!!!

Just another round of grand scale theft about to happen.