Personal Portfolio Update: September 30th, 2008
September 30, 2008 – 7:10 pmI had a VERY busy trading day.
Alright before I post some charts up on the moves I made today, let me say that today’s bounce was a dead cat bounce. For those of you who do not know what that term means, it means a sudden spike up in the indexes after a large drop for no reason at all. Volume was extremely light today and the Dow Jones industrial average had no right being up 500 points because of “speculation” of a new bailout package. I saw today as a gleaming opportunity to load up on puts so I cocked the shotgun and put about half of my free cash to work today. We should see a selloff tomorrow barring some retarded message from congress that somehow sparks another dead cat bounce. I should have loaded up on Spyder index etf puts (SPY) and Dow jones industrial 30 ultrashort calls (DXD) right before the close but hindsight is 20/20. 
Here are the new purchases I made:
Iron Mountain (IRM)
-Here is a 5 year graph of IRM. Notice the bounces it has off of this support line.
-Looking at the 9 month graph of IRM now, the share price had a nice retrace to the newly formed resistance line. I will be monitoring this very carefully. I currently own the November 30 puts.
Next is Monsanto (MON)
-Even though ag companies have been taking an absolute beating, I don’t think the onslaught will stop anytime soon. We had another retrace of a support line and the stock is currently in a nice down trend. I currently own the November 80 puts on this.
Next up is Energy Sector Spyder Trust ETF (XLE)
-This one is fairly simple. We had a huge crack of a support line with yesterday’s 777 point drop and we had another big retrace today. The etf closed just above the support line so I will be monitoring this one as well. I currently own the October 58 puts.
Next is Continental Resources (CLR)
-We have an extended head and shoulders formation with a perfect touch of the trendline today. I currently own the November 35 puts.
Lastly, I have Canadian Railway (CNI)
-I actually owned this position but for some reason, my sell order triggered today on my contingent stop order at $370 a contract. I was a bit peaved when I saw that the options price ran up to $440 each but I ended up rebuying in at $400 so I do not mind taking a 30 dollar hit. I currently own the November 50′s.