China had a 3.68% decline on Friday.
Big congratulations for Andy Swan and the Daytrade Team.
Barclays listed eight domestic bond ETFs yesterday but more importantly Barclays' ETF guy says that foreign bond ETFs are on their radar. If/when they actually do this I think it will open the gates for a huge step up in innovation.
A couple of weeks ago I started subscribing, if that is the right word, to a service from Inveslogic that emails me a bunch of blog and other content. I know that many sites do this including Seeking Alpha and I am sure theirs is good too but I am impressed the Inveslogic and get a lot of utility from it.
Jyske Bank (pronounced Yee-Ska) thinks the decline in oil is good news for Turkey.
I have an article that should post today on either RealMoney or TSCM about opening an HSA account through Options Express to be able to trade stocks or mutual funds. We had our account at Bank of America that just started offering mutual fund but when I went to place an OEF trade the site did not work. BTW I checked with Ameritrade based on an old reader comment and was told they don't have HSAs anymore.
Adam Warner has a post here and here about naked puts. I am a fan of the strategy when done in moderation. Just a few trades a year can add more than a few basis points to the overall portfolio.
You gotta look at this chart from Barry Ritholtz.
We have no snow yet from this current storm that is supposed to come but it is windy as can be right now and we are just waiting for the electricity to go out.
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11 comments:
I second Roger's take on naked puts. I sell over-valued puts to buy puts for the general market indices. Before this I spent 1-2% every year on puts buying for hedging my portolio from time to time. From last year my hedging(portfolio insurance) became essentially free.
Guess I'll 'third' Roger's take then. In addition to Anon's point above, selling naked puts at a strike where you wish to actually buy a stock is a good way to pay yourself for waiting (for the stock to reach that price and be 'put' to you).
It's not necessarily a bad thing if the stock in question never reaches the target price either (although you'd probably want to reassess your technique for determining intrinsic value if it happened very often).
Adam notes the problem, but states it in a way that talks about opportunity foregone. If stated as a loss potential it might not seem as attractive.
Adam says that: "The put sale is just an alternative, and depending on how many you sell, you probably lost less on the put sell than you would have on a stock long".
My way of stating it: If you sell naked puts, your loses have the potential to be far out of proportion to the maximum upside gain.
I would also add that because of the chaotic nature of market pps, it is extremely difficult to accurately assess the risk involved, and that apparent arbitrage situations can end up being illusory.
It is a "framing" problem that has been noted by behavioral finance types for some type. What risk an investor find acceptable is often more a factor of how it is stated/presented than the actual numbers involved.
This is off topic, and I rarely go out on a limb like this, but I think we may be seeing the top of the cycle that began last June:
- Momentum has been waning with every new high.
- Intermediate term sentiment has peaked and is now falling (sentiment peaks usually lead price peaks)
- Short term sentiment is very overbought
I think I'm going to hedge a bit with a small position in a 2x inverse fund at the close today. I'll probably hold it for a week or so or until we get a short term oversold condition.
Roger,
You can still have an HSA account and trade at Ameritrade, but it is tricky.
You have to have your actual HSA account at HSA Bank. Through their corporate account, they will let you open an account at Ameritrade to buy/sell stocks and funds. There is no additional charge for this, other than HSA Bank's state charges and minimum account balance fees.
Check it out.
Russ
I meant to write "stated charges"
Russ I spoke ot Ameritrade in that exact context, which is how Options Express does it and was told no but a dude named Dustin or something similar.
DBA has gone up 5.6% today, GDX,IGE also went up a lot. The huge upswing of commodities can not be too good for the market. I am thinking like Tom K that I will add a liitle more hedge to my portfolio.
i think i am the old reader that you speak of.
I still have my HSA account with TD Ameritrade. I place swing trades in it on almost a weekly basis, including this week.
Ameritrade calls it Ameritrade Retirement Services.
As Russ said you will need your HSA account to be with HSA Bank. You can either choose to keep your money in their money market account, or trade it through their brokerage partner. Used to be Harris Direct and they switched to Ameritrade a year or two ago.
I've had my HSA account at HSA bank for about 6 years now, and i have no complaints. Their fees are very reasonable (which is why i picked them to start with), a live person answers the phone, and they pay good rates on your balance.
The Ameritrade account has no option for trading options. You can trade stocks and ETFs (and i have) through it. There are also options to invest in Mutual Funds and Bonds, i do those through Vanguard so i never tried this option, but it is there.
They charge $15 per ticket for market order trades, $20 for limit orders.
Their support people think that you have to go through a special website to access this account, but i access it through the regular Ameritrade website and it works just fine.
I have a very high deductible insurance, so i can put away around $5500 per year in the HSA account. With prudent investments an account can grow to a considerable size in several years.
http://hsabank.com/products/ameritrade.aspx
here is the link from the HSA bank website that describes the Ameritrade brokerage option.
to all the HSA comments;
fair enough, I got bad info from the guy on the sales desk that I spoke to.
I did specifically ask about third party administrators and so on, I think I asked three times and got a not anymore from him.
They have left me with the impression its a no can do.
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