I made quite a bundle on ARNA trading both ways. VVUS also. Shorted VVUS at 26 after FDA approval using puts. MNKD is another but still holding onto until they get FDA Approval. Bought some JCP a few days ago. Get it while you can before private equity and hedge funds go back into it. Scale in and don't buy all at once. Buy Puts or a spread for protection. You can sell the $5 Put and pocket that money with the premiums so high. Only trade what you can afford to lose.
When you trade TZA on a daily basis your chance of failure is about 99.99% in the long run.
Melford Jack will have to pass out farm animal to those in need if this is true
Bernanke will not taper when he is about to leave office. That will be up to his replacement.
Anyone who actually goes all in on one stock should not be allowed to have an account. I was just bringing back some Jack "Farm Animal" Melford with his all in headlines. I am in TLT and buying more on the pullback today. There is no way yields go back up to 3% now. Buy some call spreads if you want to risk less money.
I like the mortgage REIT's at these levels. They have been beaten up so badly there is so much bad news priced in. I would probably buy the REM with a 15% yield coming off a bottom. Take the basket of the whole sector and you should do very well with less exposure to volatility and dividend cuts from individual companies.
Watch bond yields move even lower over the next few weeks with the debt ceiling coming ahead soon. I did not think the Fed would taper, and still think bonds are a bargain at these levels. The 10 Year should head to 2.50 or even lower if it overshoots. Buy some TLT. Massive short covering in bonds underway.
I would be looking to buy bonds near these levels. I think the Fed surprises and there is no September taper. Lower rates will also take the market even higher so get ready.
It has been spotted a few times recently and has done nothing to bring the market down. In fact, I would not be surprised to see more new highs now.
The chart looks like it is finally ready to rebound!!!! It can't go any lower. Buy NOW hand over fist...
that is, if you want to keep losing all your money HAHAHAHAHAHA
You have to ask yourself why stocks went up in the first place? Most investors use the discount method when valuing stocks. If you don't know what that is, then you should do a little research. However, just to give you a basic answer, the discount rate has increased. When that happens, stocks go down. This is why there is a double whammy in the market at the moment.
The fear that QE3 is over has forced investors to sell bonds ahead of the Fed. In doing so, the value of stocks naturally have to decline as equity investors will require more risk premium in their investment. Why should an equity investor hold stock for a 2% dividend if the risk free rate is yielding 2.5%? Stock dividends have to adjust for this. The only way for that happen is for prices to decline so the yield on the stock goes up.
When all is said and done, I think investors have sold bonds to the extreme and would be a buyer of bonds. I would buy the TLT. I do not believe the Fed will taper as soon as they make it seem. Everyone is pricing in the Fed exiting bonds by next year. I do not think the economy will support that with poor economic data coming ahead. Rising interest rates will be a headwind for the economy.
The best answer to your question is to buy bonds and equities. As yields go back down, you will see price appreciation. As yields go down, you will then see stocks go back up. I don't think stocks will go back up until yields go down first.