Options pricing and black-scholes book came in. It's not as good as I thought it would be. The format is meh, and it's almost overly basic. Pretty much exactly what I'm learning in my corporate finance class as far as volatility and std. deviation goes. I'll keep reading through it though. Still waiting on the Excel book.
Anyway I'd really like to take a minute to talk about fiscal stimulus...
It seems evident to me that republicans have dove off the deep end. And Paul Krugman agrees in his Blog post - The Crazy 36.
It's a shame really, that the party lines are being towed, and even State Governors are following suit by rejecting funds. It's political grandstanding, considering it would only be a 20% increase in funds already provided by the government. But I suppose being politically savvy means doing things at the expense of your constituency in order to take some sort of "moral high ground."
Brad DeLong makes a compelling argument and reasoning for why fiscal stimulus will work. I highly recommend reading his and Paul Krugman's blog, as well as Matthew Yglesias, and Econbrowser.
That's all for today.
So the dow rebounded late in the day around 2:43, was up about 1%, and then ended down 80 pts at 7270.89. This essentially confirms the pennant I drew earlier. I think I'm going to position myself according, long BGZ, and long FAZ. The 3x large cap and 3x Financials.
Ended the day up a total of 50%.
Waiting for my two books from Barnes & Noble. Should be here tomorrow -
Microsoft Excel Data Analysis and Business Modeling
and
Option Pricing: Black-Scholes Made Easy
Going to teach myself Excel, as well as options trading. I figure it can't hurt to know this stuff when I interview with PAR Capital, if I get an interview at all.
Well, it's pretty much a given now. Dow 6000 is in our sights and it's not letting go. One can see the bearish pennant forming...
For now I'm staying short with BGZ, a 3x ETF, for the Stock market competition. Up 43% give or take .5 right now.
My personal opinion - We're going to see 6000, and we'll linger in the 6000 range for a while, maybe a few weeks, then the rest of the year is going to be trading in the 7000's. We'll see if I'm right. Best case scenario is 9000, worst is 5000. I don't think we'll see lower than 6000 though. At least...I hope not...
Yup... finally decided to start a blog. I'll be posting here periodically, voicing my views, doing whatever.
Hopefully I'll get some technical analysis up here, some new photography etc... This will be interesting.
Me
haha
