Thursday, September 16, 2010

Long Layaway

Hi Everyone -

      Well Life got in the way of the 2K-10K Challenge's postings but it is still in effect! I made a few changes to my account (some good and some bad)!  Lets start with the first bit of news ... I sold SLV @18.03 for a 4.98% gain!  Now as I posted earlier I owned 100 shares of SLV for a total profit of $85.06!  Talk about good news!

       I then purchased 100 shares of Activision (ATVI) at 11.75 on 3/18/2010.  Of course right when I bought the stock it started to drop. Its current price as of today is 10.75 which is an UNREALIZED LOSS for $108.95!

But that is it for the bad news ...

      I was shown an interesting ETF that corresponds to twice the inverse (200%) of the Barclays Capital 20+ Year U.S. Treasury Bond Index.  It is the ProShares UltraShort 20+ Year TreasuryProShares UltraShort 20+ Year Treasury (TBT) which has been gaining ever since I purchased 50 shares on 9/7/2010 at a strike of $31.81.  As of today TBT is priced at $33.94 which is 6.1% gain ($97.55 UNREALIZED GAIN)!

     Why did I become so interested in TBT? Well as the inverse of the USD Treasuries I felt it was a great hedge against a bond bubble which I believe exists in this recovery mode economy that we are currently experiencing.  With the stock market taking a beating many investors (mostly institutions) are seeking the safety of the US Treasury Bonds.  Even nations like China and Japan have been purchasing them for years (think Iraq War, US National Deficit) which has lead me to believe in the existance of a Bond Bubble  This coupled with the fact that Uncle Sam's deficit is only getting bigger has lead me to believe that this bubble will be popping in the near future.

These are my thoughts ... what are yours?


  1. gold baby gold... really tho, minerals and food is what i invest in... well that and casino stocks :)

  2. Very interesting trading figures there man.

  3. shouldn't you just sell your atvi for a loss? that way you dont have your $$$ tied up on a stock that is clearly voliatile yet flat. just take your lumps