Tuesday, February 12, 2008

My New Best Friends

Yesterday, I noticed that the market wasn't going down anymore. There was no fear in the air. I checked Kass and he was buying. Meisler was saying one more whack ought to do it.

So I committed 30% of my cash to SPY and the Total Stock Market Whizbang Fund, VTI. They're my new best friends. They closed agreeably.

This morning, Warren Buffet - bless him! - came out with a modest proposal to MBIA in which he would accept the risk for all mortgages that had no discernable risk, in exchange for the company. The last I heard, the company was thinking it over.

But the market got a laugh out of it and the general good spirit engendered caused everything to go up in the morning. I was a market genius for about three hours. I thought about selling for some quick walking around money, but I held off.

Then the bloom came off the rose, and if you've ever seen a rose without its bloom, you know what I mean. If I had sold everything in the morning, like I should have, I'd have been buying it all back in the afternoon. But, no.

I got home in time to see Fast Money. They were all bummed out about the day. Something, in the rarefied air that only they breathe, stank. I perked up. Everybody testified about their bummedignation and they all agreed that GOOG should be shunned.

It made my heart fibrillate. The idea that GOOG might go down set my mind reeling with possibilities, long since foreclosed. But I resolved that I would make no move toward reconciliation unless it went to 450. Maybe, 475.

You see, I just like SPY and VTI for a trade. I wouldn't want to hold them for the long term.

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