Tuesday, March 11, 2008

New Sidebar Content & Other Stuff

I've created a new side bar to put web resources for research stocks and stock sectors in a easy place for you to access.

The news about the Fed making $200B in auction securities available. This is helping the markets because it eases the impasse. I suspect that there was pressure from European banks as this sticky booger has landed in both Europe and Asian banks. I wrestled yesterday with buying some UYG. There is much truth that the hardest thing to do is often the right thing to do. That means, taking partial profits on well-appreciated assets as well as buying ones that have been battered on the rocks of current economic realities. I'd like to be able to do this action well most of the time. Currently, I do it well occasionally. I'll shoot for 'frequently' as opposed to 'most of the time' as an intermediate step!

WLP delivered an upset number to Wall Street after hours yesterday. Here's proof that 'a picture is worth a thousand words'



My original thesis on the HMO's was that they would come under pressure. However, I've been proved wrong, and the stocks went up. Earnings reaffirmations everywhere. Given the elasticity of all of the HMO's in rebounding from declines, I took a forward position on WLP through options. Small amount. Well, my original thesis came through in spades today.

I have a hard time being patient with my convictions. I'd like to share with you the lessons that I should have learned by now. The definition of stupidity is doing the same thing and expecting a different outcome. So, here's a "My Stupid" (as opposed to "My Bad"--where do those sayings come from???).

  • Write my thesis down (my thesis generally involve sectors;
  • Note which stocs will be affected should this thesis become true;
  • WAIT for confirmation of thesis; and
  • ACT.
My sins are those of anticipation and impatience. I've had opportunities to atone for those sins, but I still seem prone to commit them.

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