I got up even earlier than yesterday and was rearing to go! I had been up all night and witnessed the -14% drop on Nikkei. I decided overnight that I better be done feeling sorry for myself or I'll be the one who's done. Then, a new trade idea finally hit me and after an hour long shower, I couldn't wait to get down to the library and do the trade that would (hopefully) launch a thousand pips. You know how I like Greek mythology...
Well, after another scary session, I'm only half in with my new strategy.
The first thing I did this morning was sell BULIF even though I had wanted to basically get out at a premium to even the largest shareholders themselves. I decided, well maybe I'm overdoing the TETSOB thing, so I'll just get out at everyone else's price. I don't know what went on with E*Trade, but it took them something like 20 minutes to execute my order.
Anyway, at that point, I was already more than an hour into doing my research. My instinct was to get into an energy play with my newfound cash and it would be either UNG, LNG, PQ, or ICO. After careful consideration, I decided I don't actually like any of the balance sheets, really. It's a combination of high debt and very high trailing 12 month P/E that got to me.
This is a pretty epic moment and something like this is thankfully not an everyday occurrence. So since I'm so cold-charted and calculating anyway, why not take it an extra step and pose the question: there's a broad based sell-off, which stocks do I really want to own?
I was clearly more than 15% too early by getting into MFG on Friday. But getting into a Japanese bank at this point can't be a long term mistake. Yes, resources to rebuild would be very obvious plays and anything from liquefied natural gas, coal, and oil to wood and steel have been mentioned in the media as requisite resources. But credit would more than likely be necessary to power the rebuilding effort as well and where would that credit come from other than the BOJ and then the commercial banks? So Japanese government bonds and commercial banks would also be good plays I reckon.
Plus, I actually think the Japanese bank balance sheets that I researched are good and would be even better if a few more price levels were unbuttoned. So I put in a conditional one cancels all order on Mizuho Financial Group (MFG), Nomura (NMR), and Mitsubishi UFJ Financial Group (MTU). Unfortunately, I did not get filled - yet. My levels are evil and I'm targeting to buy a break below 52WLs.
So is this the worst of it or will the market give it to us strong?
Sticks and stones may break my bones but brains and pips excite me...
Aujourd'hui, my portfolio clearly says: ForexDiva, show us why you didn't get into Columbia:
-0.78% SBA
-1.64% Roth IRA
-1.12% S&P
-1.15% DJIA
-1.25% Nasdaq
-10.55% Nikkei
I'm going to keep going even if I'm my only cheerleader!
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