Wednesday, December 15, 2010
12/16/10 I'm Not Lisa
Anyone remember this one from the seventies? The lyrics come to mind sometimes when I run into the same old strung out longhairs on my way to/from work. I can think of few 'situations' as tragic as spending a lifetime lost in the haze of mental illness. Family? Well, the 'family' might be the reason they hit the streets in the first place.
What does this have to do with trading? There's a 'Bernanke Saves' sign that juts out from a small mission on 6th near Market- a 60-watt bulb illmuninates the concrete step and unadorned glass door that leads inside. It takes a resolute faith to believe portfolios taken down by inverse leveraged funds with street names like TZA (let's set aside the reverse split makeovers that fool no one) will someday be resurrected.
Those are exactly the kind of beaten down ETFs I want to invite into my portfolio. They're volatile personalities, however, that require protective stops and more importantly, exquisite timing. Shrinks like Bernanke have it right- serial POMO injections may cause a little short-term pain, but should ultimately breathe life into these lost souls.