Gonvernment SNAFU

Hold on.. just about to get perched up on my soapbox. Does anyone else wonder how some of our elected representatives survive in the "real" world? I could not believe some of those questions they were asking. It seems like they don't have a clue as to what is going on in the marketplace. I'm just as upset as the next investor and there is a ton of blame to go around, but now is the time to fix the issue and then do a little "head hunting." Leave it to the government to fumble and make the process harder than it needs to be. Do they not realize that time is of the essence? Okay I'm done.

Now onto some trade activity....I tried to get into the UltraShort S&P 500 Proshares (SDS) today at a discounted price, but set my price too low and missed out. I think the market will feel the pressure of the continued dragging of feet in Washington. Earlier this week I picked up some Jan 2010 $2.50 calls on WAMU (WM) and went long on the U.S. Oil Fund ETF (USO). HAGO Justin

Update: Looks like the WAMU is done according to recent reporting, so chalk that up as a learning experience. Got a bit greedy and should have sold a few days ago to "lock-up" some minor profits.

Managed ETF's: Good, Bad, or Ugly?

I've been reading some articles about a new investment vehicle, known as the actively managed ETF, which was recently approved by the SEC for implementation. According to Active Trader Magazine dated April 2008 p.g. 64-65, unlike traditional ETF's, which passively track an index, actively managed ETF's will function more like a mutual fund, with fund managers responsible for the composition of the fund. I wanted to get peoples thoughts on what they think about this new vehicle. Here are a few key points:

1. The SEC is limiting the amount of trades a fund can make in a week and all trades must be done the same day.

2. The fund's holdings must be posted online before the beginning of each trading morning.

3. Critic's claim these will be more expensive and less efficient than a traditional ETF.

There are many articles discussing this point, which can be found on the web, but I wanted to get other investor's input. HAGO Justin

Latest and Greatest

Finally got into Vasco Data Security INC (VDSI) via an options play. I bought a Sep 10 call for $3.70 and I like the fact that I have until Sep to let this trade play out, which is the great thing about options. I am still a newbie to the world of options and still have plenty to learn. In this volatile market, it has been my investment in calls/puts, which has earned my the most money this year. If you are an investor interested in learning more about the options, I would recommend checking out this book: "Understanding Options" by Michael Sincere. He lays out the basics in very understandable terms and it has been the book I reference the most.

Just wanted to bring everyone else up to speed on some recent trades. I have added to my position in Sterlite Industries Limited (SLT) and re-entered into Companhia Vale do Rio Doce (RIO) in after market hours trading. HAGO Justin