Thursday, June 24, 2010

An "Inwestor"

What's an "Inwestor"? (notice the "W" instead of a "V"). It's a spoof on a TV commercial. My associates and I use it to describe a trade gone bad and you don't want to sell it- you become an "Inwestor". Has our position in FAS became an "Inwestment"? We have had mutliple opportunities to escape and yet we have not. I thought for some reason the finance reform bill will not be as bad as everyone thinks and the financials would rally; however, the technicals do not look so great. Do we try to trade out of our tight spot? Do we just hold? These are tough questions the "Inwestor" has to ask. The computers gave a sell on June 21st and we did not listen, they gave a sell on June 22nd and we did not listen. Now we are trapped in a quagmire. The only good news is the VIX is high enough that we might get one more chance to escape. This trade was human error all the way. We can only hope for an escape or new trade-out to escape. Stay tuned and check emails.