Wednesday, October 1, 2008

More Short Term Mania

I was successful in completing a two day Google (GOOG) roundtrip yesterday. This morning, I bought some State Street (STT) and Citigroup (C). I am hoping to sell today or by this Friday.

From a technical standpoint, the risks of trading have increased, despite the higher chance that a revised bailout bill will pass. Most financial stocks hit all-time lows this week or last week, so the smart money has already been made. On the other hand, I just saw a headline, "Dow 7000 in the Cards?" so perhaps there is still enough fear for a decent-sized bounce when the bailout bill passes.

One note: the "revised" bailout bill doesn't seem much different from the original. Apparently, the key change was raising federal deposit insurance to $250,000. Some reports indicate the revised bill contains AMT relief, but Congress already passed a tax plan last week with AMT relief.

The information on this site is provided for discussion purposes only and does not constitute investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence.

on October 2, 2008: sold my C, still have my STT, but hope to sell soon.
on October 3, 2008: sold my STT. Both trades were profitable.

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