Who would have thunk it? A 1% red gap to start the day and a massive a closing dip to end the day before Thanksgiving with 2% in red, making this 4.44% red week the worst Thanksgiving week ever. Wow! On the other hand, who would have thunk the best-ever October rally of nearly 20% just over 3 weeks ago?! One thing is for sure, the market is determined to frustrate ALL without exceptions!
Overnight bad news about failed Dexia Bank bailout in Belgium, and a new low in the Chinese PMI presented a one-two punch on the futures. I was surprised the gap was only 1% by the time market opened this morning. The MMs must have deployed a lot of capital to keep it up in order to cut loss. Anyway, today’s drop was an absolute eye sore on the chart.
The next support would be the Fibonacci 38.2 level at 115.78. I wouldn’t have minded a Thanksgiving rally so I could reload some, but obviously I don’t get my wish. I ended up selling 800 shares of SPXU at average price of 17.09. I am but 1,200 shares away from being liberated with my SPXU position. Unsurprisingly, now that my fears are gone, greed is trying to get in the front seat. I will have to watch it and not let it get out of hand and get myself into trouble again.
Portfolio Value: $133,200
PS. As a memento, here’s a daily chart of a recent IPO, Groupon. It’s a display of greed gone wrong. Groupon was smart to raise capitals by reducing the float to hype up the demand.