Wednesday, September 17, 2008

general market considerations

folks, yesterday i have written that we shoud buy gold, silver, oil etc. instead of selling them just because of danger of margin calls in (individual) low funded accounts...
today jumped silver +13.45%, gold +10.59%, oil rose slightly, nasdaq100 dropped -5.31%, dow -4.08%, AIG -45.33%, morgan stanley -24.22%, wachovia -20.76%, ..., goldman sachs -13.92%, ... => a reason enough to move my yesterday's comment into this separate posting :o))

general market considerations: it's so pity for me and for my low funded account to see my positions stop out at soooooo low levels which - after this huge stocks and commodities correction - we will never see again (MY GUESS!). btw, yesterday fell oil more than 7%, today further 3.20%. it's more than fear from a possible recession in the usa! it's crazy, isn't it? is it because of margin calls and forced liquidation at some huge (commodity oriented) hedge funds or is there also some other reason? i bet it is not the slightly stronger usd! well, i would like to buy much more commodities at these low, low, low levels (silver, gold, sugar, natural gas, oil, sugar, ...) instead of selling them, but my small trading account doesn't allow me to do so because of low capital coverage and threatening margin calls in case of some further decline ;o(((. that's trading, that's life ...

reason why (i.e. my silver trade from yesterday + the corresponding lessons learned :-):

item__________: silver >> position closed
units__________: 1
order type______: stop
tradetype_______: long
entry date______: 09/15/2008, 14:59
entry price_____: 10.88
initial stop-loss_: 10.60
new stop-loss___:
exit date_______: 09/15/2008, 14:59
exit price_______: 10.60
profit (loss) in %_: (2.57 %)
profit (loss)_____: (0.28) => (28 usd)
lessons learned: today an almost bankruptcy of insurance AIG (american international group) with a massive decline of 21.22% (not much comparing to yesterday's -60% !!!) bringing the stock down from 75 usd early this year to 3.75 usd today. yesterday a bankruptcy of lehman brothers + emergency sell of merill lynch to bank of america (BAC) => the fiat money financial system is laying on the floor!!! on the other side the precious metals still sooo cheap and falling down further? well, that do not really make sense, but that's mr. market! what's a crazy move in silver today: it fell from 11.15 in east asia / australia to 10.65 in europe, then jumped up to 11.20 in usa (damned hell! why do i work so much in my stupid office and do not have the time to reset my stop-orders to lock-in these huge intraday profits?). later fell silver again to 10.50 (a daily loss about 5.8%). btw, gold lost just 0.4% today. ==> in the short run are the fundamentals meaningless :o((
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