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Tanking?

I haven’t posted in a while because I was on vacation on I wasn’t able to collect data during that time which threw of some of my numbers.

I’ve also lost enthusiasm for this market when it started tanking after Goldman Sachs got hit by the SEC.  It has been mostly down, day after day since then.  Billions of dollars of investors’  money has been wiped out and that may well be the catalyst.  It’s interesting how the SEC is supposed to protect investors but by doing so may have triggered the market dip that has no end in sight yet.

One of my stop losses was trigger for Apple stock yesterday when the stock bounced all the way down to $200 from more than $240+.  Normally this would have been a good thing for me if Apple stayed at $200, but since it bounced back up within 20 minutes, I knew there was something wrong and I immediately lost the gains that I had made from purchasing the stock at $192.50 a few months ago.  So far the popular explanation is that someone fat fingered a large sell and then there was domino effect afterwards.  The NASDAQ cancelled a lot of trades between 2:40pm and 3:00pm yesterday due to erratic behavior my trade didn’t count because the stock did not drop more than 60%.  I guess the people who were selling Accenture at 1 cent can breathe a sigh of relief.  Imagine selling all your stock for 1 cent/share when it was worth $44/share  just an hour ago or buying so many shares of Accenture stock that you’d a good percentage of the company.

There is never short of fear mongerers on tv who were trying to blame this blip on Greece.   It was one of the most disappointing days for me as an investor because so many people tried to make sense of it with the gloomy economic issues in Europe but no theory in economics could not make sense of this movement.  There was no declaration of war, no country defaulting, nothing drastic in the news that would have caused the DOW to almost drop 1000 points… yet television always finds someone who thinks he/she knows what happened.

I was also very disappointed that the prudence I had in setting a stop loss ended up costing me money.  My sell price was actually $226/share but by the time it automatically sold, it was $212/share.  That’s probably a few seconds or a split second that the price dropped which is impossibly fast for Apple stock.  Too bad there wasn’t a system that halted trading at the time to avoid this kind of erratic behavior.

What is the strategy going forward?  Take more profits, sell more losses, and keep buying safe dividend paying stocks.  There were a lot of stocks that were safe that barely moved and I will probably be buying more shares of those.  Perhaps stocks that do not belong to big ETFS are safer than those that do, at least safer from fat fingering.  However,  that means there won’t be much volume.  Maybe I’ll purchase some gold, GLD ETF, that seems to be the place where people are going but there is no safe place to go if people start liquidating and holding cash.  Not even gold is safe.

I hope we’re at the bottom now, there has been enough tanking, the correction is over, next week is going to be a better week I’m sure.    This is just me being optimistic.  I have no idea what will happen next week.

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