Thursday, October 2, 2008

Went Long Financials

I just went ultra long on the financials, UYG.  OK, WTF?  How the hell can I go long into this sector when this sector is in for some more pain in the medium term?  Like I've said in my earlier post, I am pretty sure the house is going to pass the bailout package.  The package, in my opinion, is even WORSE than before.  But it serves special interest so of course it is going to pass.

I put about $10,000 into the Financial ETF.  I'll get out as soon as the news if the bill passed or not.  It should jump one way or another, and it will jump fast.  So I'll either make a good amount of money, or lose quite a bit.  This is pure gambling at this point.  I do not advise other people to do this.  This is money I can afford to lose and won't make me stay up at night even if I lose quite a bit on it.  I am just making this bet because I think the odds are stacked in favor of this bet and I think the risk-reward here is quite good.

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