Bamboo and Orchids I
I closed out my UYG today. Dan Fitzpatrick at Real Money said something (but from another trader) that stuck with me. It had to do with reasons to sell. One of those reasons was when the stock has moved too far too fast.
I believe that that much of the financial sector's EPIC move forward had to do with the SEC's announcing that they would enforce naked short selling rules. You do know that if hold stock in a margin account (as opposed to a cash account) that you do not own the stock, don't you? Also, if you hold dividend paying stocks on margin, you get credited with the dividend but you may not get favorable tax treatment.
If you hold stock on margin, then those shares can be lent out to people who short--a lovely irony is it not? You hold long in a margin account and they lend the shares for someone that wants to take you down. I've never seen such an advance in my life. Perhaps it keeps going tomorrow: financials up, oil down and technology is one of Dante's Seven Circles of Hell.
Utility stocks are looking a little weak to me. I bought a smidgen of SDP the double short of the utility index. My WX continues to do well; but I've not added here. I'm still very underinvested, but I'm adding slowly. My DUG and SUN options are nicely green today. I've been nursing DUG along for a while. I bought these in APR (for OCT expiration) thinking we'd have been there, done that already. Oil and gas has now gone negative for the year. Massive sector rotation. But if the Nigerians eat a big bowl of Wheaties and start to feel frisky, who knows where the price of oil will be.
I hope that you are fairing well through all this stuff.