If i were to dump financials & buy tech on Oct 25

Oct 22
Sold 10o PG 7080 (70.85)
Sold 100 HYG 10234 (102.4)
Sold 800 QQQQ 42082 (52.61)
Sold 200 MSFT 6088 (30.47)
Sold 200 FXA 17608 (88.07)

Kept
600 C 42.61
300 BAC 47.78
400 XLF 33


Oct 31 prices of the shares sold
PG 69.52
HYG 103.85
QQQQ 55
MSFT 37
FXA 93.2
C 41.9
BAC 48.28
XLF 33.73

Missed profits
0+100+1600+1400+1000 = $4100
Citigroup if sold = $420 loss avoided

I should have dumped all the financials and stayed put on the tech. This would have bumped my profit by $5k

Oct 26 - All headlines are rosy.

Stocks Rally on Microsoft, CountrywideFriday October 26, 10:36 am ET By Madlen Read, AP Business Writer
Wall Street Rallies After Microsoft's Strong Profit, Positive Outlook From Countrywide

I think next time when all headlines are gloom, i am going to buy tech

Lessons learned on the financial stock buys

Before selling options,

a) are you selling options for companies in a group that is in trouble. think housing, finance
b) If you are selling puts, think if there is an earnings season and if any big company in that sector will
report before the option expiry
c)Calculate how much money you need to take delivery. Remember i ended up paying $128k for taking
delivery of C,BAC,XLF etc and had to sell ntap/emc/msft/qqqq/fxa to cover some.
ntap/emc and msft (up 20%) went thru the roof after selling.

Feeling like a jack ass

Oct 25
After market MSFT posts blow out numbers. stock up $35

I sold my positions on Monday for $31 and i dumped FXA, 800 QQQQ and kept all
the financials.

Why is it so diffucult to keep the winners?
There should be something wierd in my $&*^ brain that does this.

If i cannot buy QQQQ, EMC & VMW, i should atleast sell the puts and collect the premium.
I think this should be the order of the day for the next few months.
ONLY buy tech. If you are scared of VMW, EMC sell the damn puts and collect the premium.

OCT 24 - When merill screwed up ??

OCT 24 10 am MER screws up big time. posts $8b loss worst quarter in 93 years
Home Sales fall.

DOW down 150.

End of day. DAY closes with a loss of 1 point. So it came all the way back up.

WHEN the market goes up next time

Lighten up the options position. Close some of the options position.

Dow down and all new articles suggest an apocalypse

MER lynch posts a bad result. DOW down 130. YEsterday it was up 150
All new articles project a doom.

When the market is up, everyone is happy and there are no such gloom
and doom articles.

http://biz.yahoo.com/ts/071024/10386237.html?.v=1

Dow true value is pegged at 6570


Putting a Value on the Dow
Book Value
($)
Dividends
($)
Investment Value
($)
Price
($)
Premium/Disccount
AIG
42.50
0.75
50.00
63.27
26.5%
Alcoa
19.20
0.68
26.00
37.44
44.0%
Altria
7.50
2.75
35.00
70.50
101.4%
American Express
9.00
0.60
15.00
57.11
280.7%
AT&T
18.00
1.40
32.00
41.37
29.3%
Boeing
6.75
1.45
21.25
93.90
341.9%
Caterpillar
13.00
1.30
26.00
73.57
183.0%
Citigroup
26.00
2.16
47.60
42.36
-11.0%
Coca-Cola
8.60
1.34
22.00
58.76
167.1%
Disney
16.00
0.35
19.50
33.81
73.4%
Du Pont
11.20
1.48
26.00
47.16
81.4%
ExxonMobil
21.50
1.40
35.50
92.14
159.5%
General Electric
11.50
1.10
22.50
40.04
78.0%
General Motors
-7.75
1.00
2.25
37.60
1571.1%
Hewlett-Packard
15.00
0.32
18.20
51.40
182.4%
Home Depot
13.75
0.90
22.75
30.76
35.2%
Honeywell
11.00
1.00
21.00
58.42
178.2%
IBM
15.00
1.35
28.50
112.28
294.0%
Intel
6.50
0.45
11.00
26.30
139.1%
Johnson & Johnson
16.00
1.60
32.00
64.23
100.7%
JPMorgan
36.50
1.50
51.50
45.02
-12.6%
McDonald's
13.00
1.20
25.00
56.42
125.7%
Merck
9.30
1.52
24.50
53.11
116.8%
Microsoft
4.60
0.40
8.60
30.17
250.8%
Pfizer
10.25
1.25
22.75
24.07
5.8%
Proctor & Gamble
21.50
1.35
35.00
70.80
102.3%
3M
14.00
2.00
34.00
86.62
154.8%
United Technologies
19.90
1.36
33.50
76.00
126.9%
Verizon
16.80
1.62
33.00
44.27
34.2%
Wal-Mart
16.20
0.88
25.00
44.98
79.9%
Proration factor
0.484950838
Dow
13552.02
Dow at Investment Value
6572.06
Source: Value Line estimates, author's calculations
Closing prices as of Friday, Oct. 19.

Oct 21 2007

Options expiry on Oct 19. Dow falls 366. CAT, 3M declare poor results.
BAC, WACHOVIA,C wacked. For the week dow falls about 500.

Options get called and purchase of $128k. Portfolio down 7% for the week while dow is down 4.4%