DJIA rebounds 500 points. 70% Retracement

Posted by Kris | Wednesday, October 01, 2008 | | 0 comments »


Sold my put position on Wachovia albeit a very much smaller profit last night. Nevertheless, i have another long stock that is still a loss. (another distressed financial company) . I think i need to hold onto it very very long term on this. 

I think last night was a dead cat bounce , tonight will see whether the rally can be sustained. Anyway, the last low of ~10860 was broken already with the 777 point drop. More drop is expected.

I lost count of how many US banks succumbed to either bankruptcy or takeover. They just drop like flies.Wachovia's banking line was taken away by a mere ~2 billion. So cheap. Wachovia is survived by its brokerage and asset management company. At least not kaput completely like WAMU, if so i will make more money.

The moral of the story is that when all this mess clears up in a few year..FEW YEARs..the survival of this fiasco will surely be very strong. So it is a good idea to collect some stocks during these coming years. Time is a good healer, applies also to the stock market..LOL.JUST NOT NOW. (NOTE TO MYSELF)

I kept telling my US friends to buy slowly, but alot are scared. Thus, to put my own foot in my mouth, i went and buy a "distressed" financials's stock. But now it is like -25% of my intial entry. But i will average in slowly in the future provided the company don't dissolved into further distressed. Lets us wait & see.