Before I get to my title, I just want to ask by a show of hands, how many people thought congress would approve that bailout plan today? My hand is not raised. Even though the package was put together with bi-partisan support, I knew congress would screw it up somehow. Now for my second question. Who thought it would be done tomorrow? Unfortunately, my hand is up. See article below for why I say "unfortunately":
Wall Street Bailout Talks May Drag Into Next Week
I always thought that if you were dying of thirst, and it was up to congress to get you some water, you might as well start setting a date for your funeral.
Now to my title. As you know, I am operating two accounts. One Ameritrade (account 1), one Scottrade (account 2). Well, today account number one did great, while account number 2 did terrible.
In account 1, I swallowed my pride after selling FRE for .62 on Friday, and bought it back for .72 today. I guess I learned my lesson from RDN (if you remember, I sold at $1.80, and wouldn't buy it back any higher....big mistake). Anyway, FRE closed at .85, which gained that account $2,600.
As for account 2, POWR couldn't get by a 6,300 share sell order at $8.18 in the morning, and dropped off after that. I sold it at $7.70, which was about a $1,200 loss for the day (the overall trade was still a big profit though). I then decided to buy RDN at around $5.60. It had already pulled back quite a bit, and the market was down by 300 points. Unfortunately, as no news surfaced of a deal between the White House and Congress, the decline accelerated, and the market moved down almost another 100 points. RDN then proceeded to go into the tank. That ended up costing me another $2,600, and a maintenance call.
So for the day, I was down $1,200. Account 1 was up $2,600, and account 2 was down $3,800.
For tomorrow, I foresee more pain, unless that CNBC story is wrong, and the bailout plan is approved.
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