Fine Art Printby Pamela Gladding
I'm still mostly cash. I'm finding my UYG entry.....search for word....'regrettable' springs to mind. Oh, I fully hedged it with SRS which I closed near the top today. And I did my sell almost automatically. I tend to overthink things. So I "funded" the current loss that I'm holding (in retirement account). The current close in UYG is $3 below my entry point of $17.60 or so.
A friend of mine with whom I'm having lunch of Friday (I never buy stuff on expiration day), said his contacts (at a very large money center bank) see no lending, particularly in the capital markets area. This dovetails with what V_6 mentioned in the comments area recently. Also, that credit markets will likely not normalize until late 2009. It's hard to imagine how much lowest some of these names can go.
I bought some more WX. I'm working on reversing a previous habit--that habit being averaging down. I'm going to learn how to average up. It had very good volume today. It could all go to hell, but this sector is benefitting from the meltdown in the others.
I'm still very underinvested. But I don't mind. I think that this market has much gnashing of teeth, fire belching, and other disgusting machinations to go through before the end comes in a whimper. I think that we need another bank failure to come. Oh....my friend (retired) mentions that his contacts see 90+ failures.
I think that there is more bad news to come. What will be key is to watch the market's response to that bad news. And it is important to note that in times of uncertainty, no news=bad news, as the vaccum creates all sorts of fabrications of the worst sort. That is at least my business experience.