June 30, 2008

Daily Review and Commentary for June 30th, 2008

The Dow tried to rally today and then fell back to almost even. This is not a good sign for the market.

Even though a potential rally is coming I have closed all monthly income trades in the portfolio as a defensive measure at at a small loss for the month. Considering the gravity of the situation and that this is the largest loss in the markets in 5 years it’s not that bad.

Things will get better… but we need to see some stability in the market.

We will have opportunities to generate income as we get closer to expiration. I will update you as I make any new trades.

I did add trades to my stock portfolio today (see Module 11 for details on these kinds of trades).

So far I have positions in:

GILD (added today)

GENZ

XLF

SBUX

BIG

URBN

WRES

I will add additional details and follow up as the week progresses. I still believe we are headed for a strong rally in the markets… but even if we don’t right away, I have my positions and might even be able to add to them if the market declines.

Trade with Confidence

UPDATE: Today’s USA Today July 1st, 2008 headline: “Stocks Off $2.1 Trillion This Year: Biggest June Loss Since Depression” - yep, it was a bad one.