So i realize its been a while since my last update but i have a perfectly valid excuse for that. I just bought a new PS3 last week and it has been taking up pretty much all of my free time. I must say though: It totally lives up to the hype and i personally was blown away by the graphics on some of these games. I'm currently playing "Army of Two" and "Motorsport", both of which i highly recommend to anyone with a PS3. Also, the blue-ray picture quality is absolutely out of this world. Just signed up with Netflix and cant wait for my first shipment of Blue-ray movies to come in.
On to the markets.....I do believe yesterday was a reversal in the market sentiment (atleast for a short time). As a trader you have to be able to process new information as it comes in and be willing to change your opinions based on this new information rather than just sticking with your old theories. Monday evening Lehman (LEH) announced that they needed more capital (liquidity crisis like BSC?) and were offering $4 billion worth of convertibles thereby diluting existing shareholder value. The market sold LEH off after hours monday but yesterday the market took it to the moon. If LEH had done this same thing the week of BSC going bust, i believe the market would have taken LEH out to the woodshed and beaten it down like a red-headed stepchild......but something changed and now the market welcomed the capital infusion. Also, Monday night UBS reported $19 BILLION in writedown and the market took UBS up 5% tuesday...WTF!!!
This is what i mean by processing new information and acting on it. I was admittedly very bearish on the market but after seeing the market reaction to these big news i am starting to waver a bit. Although until i see sustained institutional buying i'm still not too optimistic on the market but i am definately less bearish than i was last week. I still have my RIMM, RTH and MA puts on. Infact in the 400 point rally yesterday i even added to my MA puts because of the poor price action in MA. I believe even if the market does rally considerably in the future weeks, MA will be left behind.
I bought my first set of calls yesterday in a loooooong time. I bought June 80 calls for Las Vegas Sands(LVS). For those that havent heard of LVS, it is the biggest casino operator in the world owning prime properties such as Venetian, Venetian Macau and others in Vegas. I saw solid price action, good institutional buying all day in LVS. The calls i bought were trading at $700 yesterday and are trading at $900 today. Sold half of them today for a 28% profit...still holding on to the remaining half.
Short: RIMM, RTH, MA
Long: LVS
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