Got me beat

Me: 7.84%

Dow: 4.35%
Nasdaq: -0.24%
S&P: 2.83%

(as of about 10:30)

6/5/2006 10:45:39 AM

dear Lineoleum

that KLUCQ you recommended is down 30% today

(glad I didnt buy any)

6/5/2006 1:09:54 PM

yeah, i don't touch the pennies until i watch them for a few cycles (anywhere from a couple of weeks to a couple of quarters) and can discern some kind of pattern

6/5/2006 3:17:11 PM

Markets = down today.

6/5/2006 4:10:00 PM

Bernanke is the biggest fucking n00b. wtf uses words like "vigilant"?!

6/5/2006 4:20:27 PM

ok so i posted last night about market shorts...please tell me someone made money today

6/5/2006 6:09:01 PM

i increased my 401(k) contribution

that should count for something

6/5/2006 6:29:39 PM

i don't ever short

6/5/2006 7:26:40 PM

something about unlimited possible losses....

6/5/2006 7:32:39 PM

its more out of habit than that. plus, i wan't to get good with a handful of strategies before i move on to other types of hedges/trades.

6/5/2006 7:55:34 PM

you can short without taking on unlimited risk

6/5/2006 8:11:50 PM

Explain, please

6/5/2006 9:30:28 PM

stocks can become worthless but they can't realistically be worth infinite

think 1/c

good example - Delta Airlines

[Edited on June 5, 2006 at 9:43 PM. Reason : d]

6/5/2006 9:41:52 PM

True. But when you buy a stock, you know what your risk is. When you short a stock, you do not.

Of course, that's why you always have an exit strategy made up ahead of time.

6/5/2006 9:48:57 PM

I disagree...the risk is the same either way and its a function of the fundamentals of what you are trading. A stock or sector that is very cyclical (read semis) can be just as predictable on the downside as the upside. To really make money you have to be good at both. Look at Berkshire Hathaway - 40% increase in profits because Buffet was able to predict a weak dollar and make the right plays.

Its just been too long since we've seen a real recession or depression that most people expect indexes to always go up. How many retirement documents have you read that naturally assumes at least 5~8% growth on S&P?

But why would a short position on gold be any different than picking up EtOH stocks forcasting increase in demand.

6/5/2006 9:56:32 PM

I'd still say that when you buy a stock you know the maximum amount that you may lose and that you don't when you short.

I'm picking up what your putting down, though--that a stock going up and a stock going down are equally 'predictable'.

I'm still wary of shorting.

6/5/2006 10:15:40 PM

for you NLST doubters, here are some technicals

http://quotes.barchart.com/texadv.asp?sym=nlst

6/6/2006 2:14:50 AM

there is nothing wrong with shorts. i don't recommend to anyone or say its a great thing but why not take advantage of a market correction after a long run up. multiple high's have been broken in many aspects of the market. the scare from iran played another part in the market today along with many speculative traders in the oil industry. oh and if you didn't already mention mr. bernanke. in other words the market will rebound after it falls and thats where you sell short positions and look for the next buy opportunity

if they do it, why can't i

6/6/2006 3:06:33 AM

Iran is conspiring to to keep the price of oil high. Anytime it slides even slightly, another bullshit statement comes from Teheran to create just enough volatility in the market to have it rebound from the high 60's to the mid 70's. The price in Iran will stay dirt cheap. They just care about maintaining the elevated price worldwide to leech the wealth from non-Arabs in the export market for Iran and OPEC countries. Its possibly one of the greatest market manipulations in modern history.

6/6/2006 3:16:03 AM

someone give me a hot stock tip

6/6/2006 3:24:02 AM

Bernanke needs to drink several gallons of STFU!

6/6/2006 11:02:02 AM

Quote :

"Its possibly one of the greatest market manipulations in modern history."

I couldn't agree more

6/6/2006 11:29:36 AM

i have to say, i am so proud to be iranian, but i have no idea what the hell these leaders are thinking. one day i'll be able to go back without being drafted to the military. but as for the oil, i'm buying up oil and smiling when oil goes up and the more oil rises, the more pissed off people at the pump, the happier i get when i make money pumping oil....thats how i think of it

$8 a gallon, what would you do?

6/6/2006 11:45:13 AM

Quote :

"True. But when you buy a stock, you know what your risk is. When you short a stock, you do not. Of course, that's why you always have an exit strategy made up ahead of time."

well I think that I could think of several examples where you took on a fixed risk at the start of a trade where your major operation was a short.

One example that comes to mind quickly is purchasing an out-of-money call in conjunction with shorting stock. Thus, once the stock that you shorted hits a certain (undesirable) level you will have the option to buy the stock back at a predetermined amount, effectively fixing your risk/share to the difference in the strike price of the call option and the price at which you first shorted the stock (plus the debit cost of purchasing the call/shares/contract).

Another example without options would be simply placing a limit order to buy the stock back at a certain value; however this seems a little flakier to me. I like options.

[Edited on June 6, 2006 at 2:54 PM. Reason : sdfasd]

6/6/2006 2:53:00 PM

you're on the right track, but assessing the risk and timing of all that is a bit complicated for most people

6/6/2006 4:24:53 PM

Bernanke deserves a solid punch to the groin right now

6/6/2006 4:25:20 PM

^.

Today wasn't as bad.

6/6/2006 4:27:08 PM

so i sold all my google stock the other day

invested it in windows ipod xp

6/6/2006 4:27:52 PM

^^^where is clinton when you need him

[Edited on June 6, 2006 at 4:30 PM. Reason : .]

6/6/2006 4:29:50 PM

What do you guys think about Smith and Wesson stock?

Ticker: SWB

6/6/2006 4:53:36 PM

Its nice to invest in companies you like, but I dont really see it as a break-out year for handgun sales. If anything, they are on a steady delcline.

6/6/2006 5:06:58 PM

Who is the parent company for H&K or are they traded independently?

The US military plans to adopt the H&K M8 in the next few years and their prices could rise steadily.

6/6/2006 5:34:18 PM

Quote :

"you're on the right track, but assessing the risk and timing of all that is a bit complicated for most people"

not sure what you mean by on the right track, seems like a pretty easy way to determine risk

6/6/2006 7:50:17 PM

It's not complicated in the sense of being really difficult to figure out, but execution would be somewhat more involved than typical stock trading.

Thanks for the explanation on hedging shorts.

6/7/2006 10:06:58 AM

...not to mention if you're shorting something that may not move much, you can buy covered calls.

there's a lot of ways to play all the different scenarios, but placing all of those trades at the right time is complicated, and the transactions are not free

[Edited on June 7, 2006 at 10:43 AM. Reason : buy]

6/7/2006 10:42:40 AM

will delta airlines stock ever bounce back? I own some of that from a while back, and just decided to hold it.

6/7/2006 7:50:09 PM

This was kind of a depressing week to start investing.

6/7/2006 7:56:59 PM

You've got to start sometime. This week is a fine example of why you invest for the long term and never invest money you can't afford to lose.

This was bound to happen anyways. The Dow has been on a pretty good roll since last November or so--Bernake was just an excuse for (what is hopefully) a correction. The next couple of days will be interesting since the Dow is sitting right around its 200 day moving average.

6/8/2006 9:13:11 AM

you're supposed to buy low and sell high...not disappointing if you're just now looking to get in

these levels are decent entry points

6/8/2006 9:44:10 AM

one would think the market would take some solace in the Zarqawi news

6/8/2006 9:44:37 AM

Maybe Al-Zarqawi had a big order in process and now it has to be canceled?

6/8/2006 12:18:56 PM

6/8/2006 12:24:49 PM

LONG LIVE THE SHORTS....HAHA...

making money when the market plunges, gotta do it

if you don't know the market, don't short.
if you don't know the market, don't buy options
YOUR MONEY WILL POOF BE GONE

[Edited on June 8, 2006 at 12:50 PM. Reason : ITS TRUE]

6/8/2006 12:47:05 PM

I thought that Cramer hated options?

I just got an email from the Street saying that options are the way to go and that if I ever want to make money on it, I need to subscribe to his new options alerts.

6/8/2006 3:53:25 PM

Cramer has had several shows where he teaches the basics of options

6/8/2006 4:12:32 PM

i'll give someone my money if they invest it right and then i'll throw you a couple of bucks for the effort

6/8/2006 4:15:05 PM

i only caught one that was cramer going off on the liability of writing options.

i make most of my money off of them. its a fairly conservative way to invest as long as you don't go nuts selling puts.

6/8/2006 4:17:45 PM

options bring the cash in.

6/9/2006 2:20:00 AM

^^naked puts


[Edited on June 9, 2006 at 3:32 AM. Reason : space]

6/9/2006 3:32:07 AM

this can't last that much longer

6/9/2006 4:23:05 PM