Financial news I consider important, with my opinion, which is worth as much as you paid for it.
Please click HERE to read a synopsis of my view of the financial situation.
Tuesday, June 2, 2009
Lottery Ticket Update - Bull Destruction
As previously mentioned, the second Lottery Tickets are MUCH higher risk. So these lottery tickets aren't for the feint of heart.
Boy was I right on that statement. Lets take a look at the destruction by today's ramp job into new bull territory:
Wow, now that isn't fun. As "lottery tickets" these losses aren't that horrible. Then again, the losses may be just beginning. I am keeping my lottery tickets, and will double up when they are 50% lower (if that ever happens). So FAZ 2.40, SRS 10.08, and TZA 12.50 are my targets to add to these positions. Otherwise I will probably just hold for the next downleg of the market.
Again, see previous post, there is nothing wrong with licking your wounds and taking some or all off the table. I won't be betting long from here, but nothing wrong with taking the shorts off the table.
So I'll keep this painful post series going until we hit 50% lower, and I'll "average the price" down by 25%. See how horribly painful it is to play in the 2009 market? 2009 is not a fun year for trading.
I did warn much higher risk, I wasn't kidding. This isn't for the feint of heart. I'll update the short plays tomorrow night.