Today!

Well, what a day!

1. I am kinda glad that my prediction of bank ER is right. However, it happened two days earlier than I expected. And it cost 20% of my FAZ.

2. My 200X USB was stopped out at 15.8, and the other 100X was sold at 17.43. I made a terrible mistake of holding FAZ for almost 2 weeks. The time decay itself has cost about 10% of the total value. Again, I was planning to clear my FAZ today or next Monday, but WFC ER completely messed up my plan. I will not hold any 3X ETF for more than two days from now on, but I plan to work on 2X ETFs. I will post a time decay sheet for 2X and 3X ETFs.

3. About this WFC ER: I think this is a great great news for the market. Think about the last two sustained big rallies: last July and this March (ongoing one), one started with WFC ER and one started with Citi's "money earning" memo. This is somewhat different from the rumors or stimulus from govenment, at least that's the way how the market sees it. I plan to buy on dip and sell on high in the next two weeks (before the bank stress test results).

4. It's very interesting how the financial market moves today. A few financial stocks (WFC, USB) opened high but they went south as soon as the market opened due to lots of selling pressure. However, overall finalcial sector remains almost unmoved (the price of FAZ stays pretty much flat until noon.) To me, it's like there's hugh buying power for other financial stocks, and after 1 pm, you know what happened... All finaicials are high in the sky.

5. I sold 500 X SOL for $3.80 due to weak ER of WFR and unexpected drop of Euro/USD rate. That's bad for SOL. I will check solar sector closely and I expect it to surge before their ER.

Performance: only play with small portion, broke even since blog started...

http://spreadsheets.google.com/ccc?key=pVQc9lW1NtIaQkf2viK93Jw&hl=en