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Stock Market

Yesterday I made my second profitable options transaction. I sold a December DIA put I had bought and cleared 44 dollars.
I am kicking myself a little, because today the Dow went down even further, and I could have made a lot more money if I'd held out. I might be too much of a nervous nellie to trade options.

I sold PAS (Pepsi Americas) yesterday, because my stop order had expired. I made a decent profit, but again I was probably too premature. I bought NDAQ, as sort of an indirect play on the recent tech rally. It's not a tech stock , but the place where tech stocks are sold. I'm going with that old saw about the guys who sold picks and shovels during the gold rush making more money than the prospectors.

I notice that today PAS is up and NDAQ is down. Feh. Maybe I'm not as smart as I think I am.

Another "seemed like a good idea at the time" trade was the purchase of UDN, an ETF that is bearish on the dollar. Given recent events, that seemed like a no-brainer. But UDN is down since I bought it. It's possible I bought it too late. Time will tell. (I can't believe the dollar is out of the woods though).

I had jokingly come up with the idea of a "liquid assets" portfolio that consisted of oil and beverage stocks. (Get it?). It wasn't completely a joke...oil stocks will go up as oil becomes more precious and beverages are consumer staples, which are good buys in a shaky market.
And in the immortal words of David Letterman,"There isn't a man, woman or child who doesn't enjoy a refreshing beverage". So there's always a market for them. (OK, I guess that part is silly.)

As I look at my trading portfolio, maybe my "liquid assets" idea is not such a joke after all. My best gains are in beverage and oil stocks.
And I'd been doing even better if I had hung on to Pepsi Americas. Perhaps this strategy in conjunction with bets against the broad market (in the form of puts and bearish ETFs) may be the way to go.

In other business news, Fox Business Channel is on the air now. It has stock market analysis and lots of pretty women, such as Alexis Glick, Dagen McDowell, and Rebecca Gomez. I'm in heaven. :)