Phew! I’m glad that was over. While I was gone the market made very impressive jumps and turns… I checked it via my iphone with the 20 minute delay cringing at the lost opportunities… all the while putting in 17 hour days on a commercial shoot wondering if I was fairly compensated considering what I could do at home. Of course that is not the correct thinking – working had no risks to it while sitting at home trading could potentially be a losing venture.
I watched the markets today and did a couple of spontaneous trades. I did not use limits thinking I would only be losing a few cents of price… boy was I wrong. Market orders guarantee an execution, but at a price. It seems often quite a few cents bellow what you are looking at on the ticker. Market orders are useful if one is trying to catch a momentum and can’t risk not having the execution go through. I also lacked discipline and sold out too early. Leaving my earnings today at a flat even… minus the trading costs. Doh!
On another note, I discovered a very interesting inverse ETF fund called UltraShort Financials (SKF). Obvious to it’s name this fund short sells financial equities in order to make it’s money. Although there was good news about better than expected earnings from Bank of America (BAC), it was overshadowed by rising costs of bad loans. This combined with a negative comment from Goldman Sachs about Citigroup (C) sent financial stocks tumbling in early trading. Because of this SFK went up 20% today! I unfortunately could not get in on the action but it’s definitely something I’m going to keep an eye on in the future.
Tomorrow should be a big day. Check in for a special announcement.