Another dubious day
Once again I catch myself owning a top loser. GAP, which had a mysterious sell off at the end of the day. Company is primed for a takeover, and I don't think they'll go under.
Meanwhile, feeling the macroctrend of gold and oil was in severe correction mode, I took 2 positions, calls on ABX and LCM, of which I was down 75% on and took the remaining funds and bought the same call but deeper ITM and further out on the calender. I would rather preserve capital for another day than lose the $. And what happened? They both rallied heavily today.
I'm not upset, because I have heavily weighted toward a weak doller porfolio, and right now I am in the house of pain. Longer time horizons should prevail. We see the bailout train coming. Dollar should resume its weaker path. The caveat....the destruction of money means there are fewer dollars. WIll the Fed run the machine? Sadly, I'm betting they will.