Biggest Market Drop Since 9/11
The stock market suffered the biggest loss today since the terrorist attacks on September 11th 2001.
They were allegedly caused by profit taking in China caused by the governments comments on cracking down on the rampant stock speculation taking place and by Greenspan’s comments on the US facing a mild recession later this year. Even Oil and Gold were down today. So was every other sector!
The only green mark in portfolio was URPIX which was up 7% today, but I didn’t own enough to offset my losses. Still, the losses are to be expected and a 30% cushion still isn’t bad. Hopefully WCI will drop even further and I can actually profit from my remaining puts (which are currently underwater)
I did use the drop in GDX (gold mining ETF) to sell some March puts. If they expire worthless, then I’ll have made some money and if they don’t I’ll own some GDX shares for less than what I sold them during the last options expiration period.
Wonder how long and severe this correction will last?
If you found this post helpful, consider donating to my coffee fund!- More on Synthetic Long Positions As previously mentioned, I entered a synthetic long stock position using options in Seabridge Gold.As a recap, a synthetic long stock position is buying the calls and selling the puts to offset the cost the of calls. (If you don't know what calls and puts are, I suggest you read......
- Variable Paid Forwards Uhni (Ultra High Network Individual) of LiveJournal has a great post on VPFs. I had to read it about 5 times before I got the hang of it.If you have a million dollars worth of stock and want to sell a portion to use the money, you can implement a......
- North Korea's Nuclear Testing Causes Earthquake North Korea actually performed nuclear tests over the weekend resulting in a 4.2 magnitude earthquake. Lets see if this shakes the stock markets and causes a spike in gold prices. Oil is over $60 per barrel again. I filed gas this weekend for $2.30/gallon. Haven't seen these prices for nearly......
Related Websites
- Did Ben Bernanke Just Save Us From Depression? This morning you read about Bernanke's attempt to ruin savers for being conservative. I teased that this view might be short sighted. The exciting conclusion starts now. The Federal Reserve may be punishing savers, but that might be the right thing to do. No this isn't a rant about encouraging......
- Creating Eye-Catching Book Covers Have you ever wondered how publishers create book covers? I was trolling through YouTube the other day and found this video that talked about the process. It's a little dated but I'm positive that it holds true to today as well. Even better it looks at creating romance covers and......
- The Stock Market Bubble No One Talks About You would know a bursting bubble if you saw it? Right? Take a look at the following chart and tell me what you think. Doesn't it look a little suspicious? Has a bubble formed, or even worse, has it just popped? Take a good look and tell me what you think. I......
[All content is copyright of Living Off Dividends & Passive Income]






February 28th, 2007 at 8:30 am
I hope it does not last too long, my portfolio is hurting.
March 4th, 2007 at 2:39 am
The market’s a better deal now than
last week, or last month. don’t stop
investing…..