Tuesday, January 15, 2008

Virtual Office, $2614. Dow, -277.04, 12,501.11.

Misstrade, $3246 on 4000 shares traded.
Denarii, $624 on 400 shares traded.
Me, $295 on 11,800 shares traded.
Wincity, $84 on 350 shares traded.
Akalawoo, no trades.
Retardo, no trades.
Dehtrader, -$224 on 1770 shares traded.
Sanglucci, -$441 on 3400 shares traded.
OBAT, -$970 on 12,752 shares traded.


Wow, another bloodletting in the markets.

My father called me today and asked me if he should be worried about his portfolio. That means the market is starting to worry the "common man" who normally cares more about his golf game, or favorite football team.

Should the "common man" join the institutions in selling this market, a new element of fear would be thrown into the mix.

I mean, I imagine that demographically there are a lot of baby boomers who are retired, or close to it, who are wondering if they want to sit through another bear market.

When you get really, really old, why not just let your money grab 5% in some fixed income investment instead of chasing the 8-10% historical average that the market provides? Is that 3-5% extra worth the risk when the financial system looks like it's about to melt down, an idiot runs the country, and a bunch of clowns are trying to supplant him?

I'm thinking no, but then again, I'm not old yet.

Anyway, volume exploded today after yesterday's mediocre levels. We traded over 1.8 billion shares and the VIX ran up a bit, .53 to 23.43.

I found the VIX interesting today. I would expect it to run more on such a down day. Also interesting is the fact that one of the more disciplined traders in the VO, OBAT, had a big down day. This just shows how damn hard trading is... everyone has their dog days.

Let's see what happens tomorrow. Earnings season is upon us. The volatility may just be starting.

5 comments:

KC Equity Trader said...

For anything long term, I only buy solid stocks that won't be affected much by a recession that also pay solid dividends. The dividend yield will be just slightly under a fixed income rate but not by much to offset the selling of stock. Some case the dividend yields are higher.

I was actually looking at some stocks this afternoon for long term investment and I noticed Southern Copper Corp (PCU). It's market value is too high for me to jump on it now, but if it can get down to the $85 range it will be to cheap to pass up and all the value investors will be buying as well.

PCU's Dividend Yield is 8.30% too!

I usually do value investing research on the weekend but with the markets selling off all day with no buying in sight, I had plenty of free time.

Reese said...

If the CPI report is shitty tomorrow, look out!

StockHunter said...

Denarii $624???? Is this for real?
WTG bro!!! If this is the case, the guy just made up for all of his crappy $10 and 20 annoying losses.
Is it a beginning of a trend?
Misstrade watch your back! Here comes the Denarii's money train...
;)

MIsstrade said...

Go Denari good to see him off the $10 buck chuck. Amen!!

Dinosaur Trader said...

KC,

Thanks for the idea. I was thinking the other day that now may be a good time to start nibbling at a broad range of stocks... like, looking out 20 years kind of thing, the "blue chip" names. To counterbalance the growth stocks that normally populate my portfolio.

However, I think there's still plenty of time.

-DT