Phantasmix Stock Market Blog

I sold the remainder of my Formation Capital (FCO.TO). This was one of the loser long-term investments. I didn’t sell because it went down, but because they’ll need a lot of money to develop the mine (provided they get the permit first: they’ve been waiting for it for 8 years and it’s due any day now). In the current credit environment I don’t know just how realistic it is to get almost $200mm without some sort of equity dilution. So I still like the company but think I’ll be able to buy it cheaper later.

Moving on… Traded MOS twice, long and short. Should’ve stayed long.

Bought half (SDS: 17.415 +0.61%) at $72.52. It may dip lower according to the charts, then I will add the other half. Why not wait for $66, at least? Because this market is bipolar, that’s why. I do not believe in a lasting mini-rally, not even 2 days in a row.

Going into the next Monday, I want to be mostly short.

• Cash would be good in a deflation.
• Cash would be bad in an inflation.

What stores value equally well in any environment?

Real estate – meh, not so much. I’m thinking (once again) – gold.

Of course, in a deflation cost per ounce goes down, however theoretically (and practically?) that ounce of gold can buy you the same amount of “widgets”, because “widgets” now cost less as well.

I’ll try to buy some gold from Questrade tomorrow.

Update: I changed the subject of the post, accidentally put in “Depression” instead of “Deflation” oops, Freudian slip.

And I decided to put off buying of the physical gold until $850 is tested.

I can’t get over missing this today:

So many “epic-feeling” days lately. I have to figure out how to store all these historic newspapers.

Had I been here on Friday, I’d sell (PWE: 13.82 +0.44%). Today was too late to sell, and I only had a very brief access to a secure internet connection. I was able to watch the market action, but couldn’t do much about it.

Slightly (relatively speaking) down in (AUY: 13.66 +1.19%). Now would be an incredibly wrong time to sell, in my opinion.

Playlist for tomorrow is short. I’ve been away for 2 days and need to quickly re-learn how to ride this bicycle. It may not seem like a long time, but I was immersed in work even though I watched the markets. Need to refocus and so just 2 stocks for me for tomorrow to make it easier.

SPY or SDS (not sure if I trust Proshares in the light of the ever-expanding short ban), and MOS.

I will go long or short depending on the weather but more likely short. It’s going to rain here.