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What a difference a day makes. While just a day or two ago I was contemplating selling everything and going to cash---perhaps in my mattress---today I got back a bit of my usual bravado and tried a 'trade'.
The market by the way closed today at 11,019.69, up 410.03, and the Nasdaq was up 100.25 at 2,199.10, and the S&P closed at 1,206.51, up 50.12 on the day. Wow. THAT was quite a bounce.
Anyhow, this afternoon as I was watching the market, all of the financials seemed ready to 'roar' ahead. In fact, as this report relates, it was quite a move and it was the financials that provided the engine for the move:
"Sept. 18 (Bloomberg) -- U.S. stocks rallied the most in six years on prospects the government will formulate a ``permanent'' plan to shore up financial markets, while regulators and pension funds took steps to curb bets against banks and brokerages.
Traders erupted into cheers on the floor of the New York Stock Exchange as the Dow Jones Industrial Average jumped 617 points from its low of the day after Senator Charles Schumer proposed a new agency to pump capital into financial companies. The Standard & Poor's 500 Index climbed 4.3 percent as 68 companies in the gauge rose more than 10 percent.
Wachovia Corp. soared 59 percent, Citigroup Inc. added 19 percent and Bank of America Corp. jumped 12 percent, sending the KBW Bank Index to its biggest gain since July. Morgan Stanley erased a 46 percent tumble and Goldman Sachs Group Inc. recovered most of a 25 percent slide after the nation's three largest pension funds stopped loaning shares of the brokerages to investors betting on their declines."
Quite frankly, I thought that the financials were oversold. And that efforts were being made to stabilize their prospects. With this in mind, I took a 1,000 share position in Citigroup (C) at a cost of $14.81. A little more than an hour later, with Citigroup rallying strongly, I went ahead and sold the entire position at $16.86. That was a gain of $2.05 or 13.8% all in an afternoon on that position! I don't think I can easily repeat that trade. Just as much luck as good timing :).
With my own purchase and sale of Citigroup shares,
CITIGROUP (C) IS RATED A HOLD
In any case, I wanted to share with you my 'unorthodox' move in the context of a disciplined trading portfolio.
I guess I am very aware that my performance is 'public' what with my Covestor Page available for perusal. And anything that can add a little bit of zip to my portfolio is something I am looking for.
Back to reality for the time being :). I must be very cautious about over concluding anything with my good fortune. Sometimes the worst thing a gambler can have happen to him is to get lucky when he enters a casino.
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Yours in investing,