I did get in one transaction that came full circle, buying 1K shares of UYG at $15.735 in the morning, and selling 1K shares in the afternoon at $18.23, scoring a 15.9% return in a matter of hours. Hence, the title of this post, and the two YouTube offerings of Son Volt playing one of their best songs:
So, why did the market surge over 500 points from the lunchtime bottom?
Perhaps the fear that the U.S. would follow the U.K.'s example in banning shorts from adding to their positions through 2008. This news certainly hammered the shorts today.
Perhaps the VIX passing 42 confirmed a short-term bottom. I'm wary of our government hindering the shorting of stocks, but I have to trade with the possibility that it may soon become tougher to trade on the short side.
Barry Ritholtz is really, really pissed about this possibility. As much as I appreciate the flailing frustration in his verbiage, the anger is productive if you take note of points 2, 4, and 5, which I've conveniently put in bold:
This is nothing short of a total panic by people who have no clue what they are doing. And to think, I mocked Russia for being a nation run by market commies.
This is the ultimate bailout attempt, which will have repercussions far far beyond our imaginations:
1) We suffer a loss of Market Integrity; The US is now a Banana Republic
2) Blatant market manipulation: this is nothing more than an attempt to force markets higher;
3) 60 days prior to a presidential election? This is a none-too-subtle attempt to influence the elections -- especially coming on top of the Fannie/Freddie bailout;
4) The coming pop will create a huge air pocket, ultimately leading to us crashing much lower;
5) Expect a huge increase in volatility -- upwards first, then down;
We Are A Nation of Morons, led by complete Idiots, making us complicit in our own self destruction.
Take these factors into account, and you should see why I'm on the long side of the market right now.
And will soon be back on the short bus, riding this market down with my fellow morons, idiots, and a boy named Trig.