Rational Blog

Fasten your seat belts. The market looks like she is crashing today as futures traded limit down this morning. World markets are all down some 10% and the U.S. looks to follow suit. Where she stops is anyone's guess. I have 75% of my portfolio in cash and will use some of it today to buy. I want to see where the bottom is first. It may be early it may be late. If it is late I will buy near the close. What will I buy and how much will I buy? Good question. I'll probably treat this as a trading opportunity. As such I'll use 10-20% of my porftfolio and use to buy an exchange traded index fund of some sort. I'll report back after I make the trade.

Other housekeeping will include the liquidation of my remaining DUG position. Oil is nearing my target of $60 per share. OPEC cut production by 1.5 million barrels. It was not enough as oil is down some $4 in the early trade. I don't like the OPEC move and I feel fortunate that they did not go further in their cut. More is coming and my oil short could be manipulated by their actions. Best to lock in the huge gains and move on from there.

Jamie Dlugosch
The Rational Investor

Comments: View Comments |  Friday October 24, 2008  |  Stocks: DUG,