Wednesday, September 29, 2010

Quantitative Ease My Pain...

Ever since I renamed my blog to ForexDiva's 2 Percent In Investing, I've been on a bit of a nosedive.

Today was no exception. CENX made a new high, but a rather unconvincing one, failing to close above $13. However, I'm watching a trendline on CENX. It has technically broken above the Brian Dolan Line on a one-year chart, so it may yet have some further momentum. We still have plenty of call options from the $13 to $14 levels. I would like to see some heavy puts positioned there as well, but let's see if the calls are enough to drive prices up some more. I'm about +23% on the position in a bit more than a month and the upwards push is not intense enough for me.

I added to C yesterday at $3.88, but it was a small lot. I am considering building this position up again to a financially dignified few thousand shares position, although I have to admit that when it comes to a solid balance sheet, there are much better picks. It's just that... well, I've fallen in love with the potential of C. Risk:reward wise, C is just too irresistible. If I find another stock in the same price bracket, I might have to rethink this strategy.

Report Card for today:

-0.85% on the SBA
-0.19% on the Roth IRA

Is anyone else wondering... aren't the Central Banks a bit like manufacturers who don't even believe in their own product? They're manufacturing so much money and yet go out and buy gold. So essentially, they're saying: even we know that our product is all about the marketing. How's that for confidence?

Yet without the marketing, all they've got are bits and pieces of paper.

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