Wednesday, January 14, 2009

Looks like a breakdown

As I write this (10:26 AM) the S&P 500 index is trading at 846, which is its lowest intraday value since early December. I was hoping for some kind of signal at a higher price so that I could take a better position in GRZZX with my remaining cash, but that never happened. So for the time being I'm going to keep my 25% cash position as insurance against any freak rally. If the market keeps falling from here, I'll be perfectly happy to make gains with only 75% of my assets in GRZZX - it's better than no gains at all.

1 comment:

John from Colorado said...

It looks like you were right on as usual with the market slowly declining. I have seen predictions of Dow 6000.
Well, I have gone a different direction with my investing. I liquidated my DXO(ultra oil) position last week near the short term high (more luck than anything) and today moved 50% of my portfolio into UCO (ultra oil) because it is correlating better with the actual price of crude oil. DXO had not corrected down relative to actual crude prices so I see better opportunity in UCO. I will put the remaining 50% into UCO if oil drops below $30/barrel (currently at ~$34). At that point I will watch and wait for $75/barrel oil (either this year or next or the next...). My only hesitation and apprehension is the relatively small risk that the derivitives markets and associated counterparties fail. I will continue to follow your blog. I find it very interesting, accurate and helpful. Thanks! I'm always interested in comments and feedback from one and all. Good luck to all!
John from Colorado
PS: Spelling has never been one of my strengths, so my apologies. I need blog spell-check. Also, the state of Colorado desperately needs money so come ski Colorado and spend some of your investment profits in our state.