Some guys go fishing and have fishing tales. I don’t fish. I invest. Here is my tale.
Across the field of battered stocks was EEV. EEV is an UltraShort of the Emerging Markets. I know I said I wouldn’t touch the ultra-shorts because of the counterparty risk, but I couldn’t resist. The stock had dropped $100 in just a few days. I could feel a snap back was coming.
I finally moved a baby 401K of $5K away from the fixed income plan of my former employer. By Tuesday I noticed the check had been deposited into my self-directed account at Ameritrade. I had hunting money and EEV was looking like a sweet target.
Bought 70 EEV @70.00
Then EEV exploded upwards. $80. $90. $100. Should I sell? This thing could go to $200 or back down to $70 or lower. Or the entire ETF could explode and it could go to $0. Lock in the gain and walk away.
Sold 70 EEV @101.50
Minus two commissions my baby 401K is now worth $7205. A 44% gain in 48 hours. The hunt was good.