It seems that the market’s somewhat stabilized the past week with the Federal Discount Rate cut. The market’s been up for the past few sessions so it appears that life as a bull has been good once again.
- Monday (8/13): Rumors appeared to swirl that the FOMC was having an emergency meeting Monday morning regarding the state of the market. A general statement was released stating that the FOMC will be observing market behavior.
- Thursday (8/16): The market swung from a 300+ point deficit to closing almost unchanged. Volatility in the market was incredible with the VIX appearing to reach the 35 point level. Thursday also signaled the Dow dropping below 13,000 for the first time in a few months. Dell also concluded its two-year internal investigation regarding accounting irregularities. Dell has stated that the past few years’ earnings will be restated. Dell’s stock climbed 2-3% on the news.
- Friday (8/17): The FOMC cut the discount rate, the rate at which banks can borrow from the Fed, by 50 basis points. The market responded with a healthy 200+ close. However, it wasn’t as high of a close as some expected.
- Total Deposits: $1,417.26
- Current Portfolio Value: $1300.11
- Profit (Loss) as of August 23, 2007: -$117.15
- Profit (Loss) as of August 15, 2007: -$51.96
- Profit (Loss) as of August 8, 2007: -$ 103.88
I need to fine tune my portfolio as I’ve not really moved up or down. I’ve asked some of the more experienced traders on Stockpickr.com for advice on how to restructure my portfolio or if I should take a more wait-and-see approach. The problem is as the market climbs, I’m staying put (and no, not the option). Natural gas reserves reports come out this morning. Hopefully that’ll push XTO higher resulting in me able to cash some of my position out as well as some of the XTO options I have in play in order to make up for lost ground.