There were no OTC run ups today, which is a good thing because I spent the morning buying into a bunch of hard hit financials on their mid-morning dips: Ambac Financial group (ABK), Radian Group (RDN), Security Capital Assurance (SCA), Triad Guaranty (TGIC), and took advantage of the down day to double my positions in C, FRE, and RF. The Dow was in the red all day, so I figured it was as good a day as any other down day to pick up some bargains. But in all honesty, it was my plan to get into these guys today regardless of the market, so I really just got a little lucky.
A couple weeks ago, Universal Energy (UVSE) said they’d be finishing a well soon, and the news has yet to come. So, I’ve been keeping a close eye on that one to jump in and out of. It didn’t happen today and every day that goes by with no news, the tension builds. If played right, it should be an easy couple hundred dollars, at least.
The Dow got battered today, down 283 points to close at $11,349. Oil rose $1. I guess the Nikkei isn’t such the indicator of the next day’s US market I had hoped it was! Nonetheless, it was a good down day to get in. My balance fell about $400 today, but when the banks pick back up, it’ll more than make up for me not getting in on July 15. No one ever knows what the next day holds, and that’s the exciting part and the part of trading that gets me up early in the morning. That being said, having a plan to sit on the financials and wait until they come back has lessened the stress I had been feeling since beginning my experiment one month ago. I’m sure some experienced day traders are making money, but they’re making a living by naked shorting the large financials, and I haven’t happened across any OTCs that would make them any serious money. Then again, a lot of day traders work with large amounts of capital, which does open up a lot more possibilities. Even a 10% day on a $10,000 investment would return the trader $1,000. For me, I need to wait for the beasts or the stories of hitting oil to make any serious money. I’m still hunting, but I am happy to have gotten into the market when I did when the financials are where they are. My summer has again become enjoyable.
