Official Short-term Investments Thread

[Z_Fan]

So, I did some research. There have only been 11 times in recent history (Since 1970) where the market has done what we just witnessed.

It is very hard to not panic. I personally am out a lot of cash, and I hate to break to those who figure it's just baller cash - it is actually ALL borrowed against my house. (LOL - go ahead) It was a risk that I was well aware of. So, hey, live and learn. But for the record, you really shouldn't toss anything in the market that you can't afford to lose.

So, ofcourse, I am worried.

The good news is that in 9 out of 11 instances that this kind of thing has happened in the market, the market actually was at or above it's previous levels within 30 days of the low that occurred.

If you SELL, you will confirm your losses and have zero % chance to recover any of what you have lost. You also contribute to the market going down the shitter IMO by selling far below actual value. If you happen to have cash sitting around, well, 9 out 11 times in the past you'd be making a really good, really quick return on your investment.

But ofcourse, just like charts and graphs, history means nothing. But it does at least show you the odds are everything is going to be just fine.

Ofcourse, if 9 of 11 times it's rebounded nicely and quickly, It leaves you to wonder if we're due for one that goes the other way! Eeek!

[TrevorK]

Originally posted by Z_Fan
If you SELL, you will confirm your losses and have zero % chance to recover any of what you have lost. You also contribute to the market going down the shitter IMO by selling far below actual value. If you happen to have cash sitting around, well, 9 out 11 times in the past you'd be making a really good, really quick return on your investment.

For those of us investing long term selling off may seem like a valid strategy.

I know some of my positions are actually in a loss since I purchased them recently, and I'm going to have to run the numbers to see what taking a capital loss would do for me (Since my income this year will be relatively high). It means that down the road my capital gain (Because I would buy the same stocks/funds back) will be that much bigger, but my income won't be where it's at now....

[Canmorite]

Originally posted by Canmorite
Great short action out there. I've never seen prices move down this quickly, and with the uptick rule gone, it's been a great few weeks lately.

Futures are really smooth too on the downside. Once the morning fluctuations are out, the market tends to make a solid move in the afternoon.

Sorry to sound like a dick, but today rocked my world.

[natejj]

It's like shopping at Wal-Mart... SO CHEAP! I LOVE IT!

[rc2002]

Originally posted by natejj
It's like shopping at Wal-Mart... SO CHEAP! I LOVE IT!

That's what it seems like now, but it might be more like buying specials crappy tire. You think you're getting a smoking deal until you go back next week and it's 50% off last week's price. How many people own those $24.99 mastercraft screwdriver sets?

[roopi]

Originally posted by richardchan2002


That's what it seems like now, but it might be more like buying specials crappy tire. You think you're getting a smoking deal until you go back next week and it's 50% off last week's price. How many people own those $24.99 mastercraft screwdriver sets?

Buy a bank stock now it's like the 30-60 day price protection guarantee.

[yellowsnow]

Any ideas why the ROL.A stock prices are plummetting? I'm tempted to buy more at .80c/share...

[liquid1010]

For one thing I think people are looking at ROL.A as having very questionable mgmt right now. The deal they are looking at right now is pretty weak, and I'll be voting no on my proxy.

[Rav4Guy]

In re: to ROL.A;

Option 2: Is Not A U.S. Shareholder (Cash Consideration) (Subject to Proration)
To receive $1.15 CAD in cash for each Class A Share of Rolling Thunder Exploration Ltd. tendered (up to a maximum cash consideration in the aggregate of $8,556,640).


Option 4: Is Not A U.S. Shareholder (Class A Share Consideration)
To receive 0.333 Common Share of Action Energy Inc. (an "Action Share") for each Class A Share of Rolling Thunder Exploration Ltd. tendered.


You can choose either one.

[dmtx]

short squeeze.....

edit: referring to market this morning....

[Rav4Guy]

^ nah.

"A situation in which the price of the stock rises and investors who sold short rush to buy it to cover their short position and cut their losses. "

Short sellars were making tons of money... they didn't need to cut their losses. They were cutting into their gains if it were so.

[dmtx]

short squeeze doesn't have to be just cutting losses... it could very well be losing some of their gains.... it's when they stumble to buy back the shares they barrowed causing the price sudden hike... 300 points up for the first hour of trading can't just be becauese of the .5 rate discount.... then after the first hour it started to go down to 200 points again...

[Rav4Guy]

hey, that was just the definition of short squeeze. If it was "to buy back shares they borrowed", they they were covering their short positions.

[dmtx]

I don't want to argue because your the investment advisor but your wikepida definition is very limited.... there's tons of books that states the different aspects of short squeeze....

[dmtx]

just a little better perspective....

http://www.investopedia.com/terms/s/shortsqueeze.asp


like i said short squeeze is about "price hike caused by short sellers buying back their shares they borrowed".... cutting losses is just one reason for it......


EDIT: ohh and BTW, I'm referring to the market today when I mentioned about short squeeze in the morning... not about any stocks/equties/securities mentioned in this thread.....

[Rav4Guy]

no... I'm not trying to argue here but the squeeze part just refers to it as being someone "pushed" into buying it back.

Anyways, markets ended on a good note today but the continue of liquidity continues. Major banks and lenders are working on solving this issue. Until then, we may see a grey market for maturing fixed income securities. Initially, the lowest price that people are offering are in the ranges of 80-85% of par with it being as high as 90%.

[Canmorite]

I think the squeeze was mostly due to ~50K contracts going through (in 1 minute!) on the S&P this morning and hitting a lot of stops at once.

[Rav4Guy]

^ unrelated but trades on the AMEX stopped for a bit due to technical difficulties....

[red99600]

rol.a dropped big,

do you guys think it is still a good buy?

[liquid1010]

I really don't know what to make of ROL.A right now. I was hesitant when it was pumped by 89coupe at $1.15, and then waited until it hit $1.07 - then I jumped in.

For those interested at all in technicals, the Bullish Percent Index on the TSX just hit it's 18 month low, and we could see some positive pull upwards.