Thursday, April 16, 2009

What A Difference A Day Makes

My advice earlier in the morning was not to chase low priced stocks. Since I was being preachy I couldn't violate my own dogma. But others did and boy was it fun. The crappy little company, nameless, that doesn't have a real business shot to the moon. It started the day at .02 and ended at .052!!! The move from .004 several days ago is nothing short of astounding. Logic and analysis cannot be a part of the move because it is illogical. It was all momentum and greed in tiny dollar amounts. But it is symptomatic of the market. Be nimble and lighten up positions.

Now if there was ever a position that should be lightened up on, it is the speculation I just wrote about. However, significant selling is apt to bring the price crashing down. I'll dribble my shares out over the next couple of days.

Tomorrow is the last day of trading on April options so I'll get ready to write covered calls again on Monday on my remaining portfolio.

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