Bulls Battle Bears

So Friday was an ugly trade day…for some that is. With the financial stocks in the toilet and the government diluting shares even more in (BAC) and (C), its a matter of time before both stocks get nationalized. Don’t want to believe the worst case scenario? Just wait. Its impossible that the largest bank in the US, BoA, can go under, and how much will the American government give out before taking over the bank? The worst is about to come.

Anyone wondering the state of Bank of America, watch this video, its unfair we bailout bad business ideas, but cant help the homeless or children that go to school without food in their stomachs…

Anyways, some people are losing their shirts and probably on the edge with poor picks and the lack of stop loss orders to protect their assets from going down further, but for me, it was another quick play day.

(BAC) is one stock I woke up and wanted to short, it seemed like there were no shares available each time I tried to get in. Whomever got in on the short side got some good money out of it, in total this week, the stock has gone done 45%..one week I said. Sad.

With that stock out out reach, I moved onto (XOM) which I was passively watching all day and noticed it touch its low 2 times before moving up and then touching its low again….I went in with a limit order of $76.90 for 100 shares and it paid off. The stock did go up before coming down at which point I was going to exit back at my entry price, however, before my stop loss could get activated, the price began to shoot up and I manged to exit at $78.07.

Total Profit on (XOM) = $117

My other play for Friday was Barrick Gold Corp (ABX) which opened higher from previous close price but quickly fell down, at the bounce back it rallied a bit before falling further, I truly thought I had picked the bottom but was wrong. I got in at $33.14 for 200 shares but the stock went down about another dollar before coming back. Again, I was on edge and was going to get out but changed my mind at the overall market started to rally. The price I pulled out at was $34.15 which was close to final price of the day.

Total profit on (ABX) = $202

My last play was another commodity play, it seemed to be the sector to play in Friday. I got into was Terra Industries (TRA). It got an unsolicited, all stock offer from CF industries at 23% premium. The stock was up significantly at the open but began to pull back. From my understand, and what my friends who are bigger sharks in the industrial stocks, the fair price was $19ish. Did the know better than me? Well I did take their advice and put a limit order around 11am for 250 shares for $18.95. I didn’t think the order would go through, however, it did and then went down further. haha..nice huh? Thankfully the stock did manage to pull it self up at the market did rally late in the day and I was able to sell at $20.05.

Total profit on (TRA) = $275

So total profit for today was = $594

Overall this week my movement was:
Tuesday = $515
Wednesday = Nortel went under, but I have not sold my holdings, so cant claim the loss…yet
Thursday = $524.75
Friday = $594

So this week I walk away with a total of $1633.75. Not a bad week.

Anyways, its the weekend and I hope you all enjoy it. I gotta study, and also work on some new articles for a beginner series I will introduce in a short while. Basically, it will be beginner topics on investing and other issues which are free. I know there are sites out there where you can pay to learn to invest, or pay to learn about other business related ideas/topics, but why pay? Soon I will help you save money, make money, enjoy money.

Happy Investing!

Aman, MBA