selling PWE +26% in one day on the stock

The chaos in the world's equities markets continues unabated with as much madness in evidence today as was in evidence any day last week, if not more.

No one of consequence in any government has addressed the core problem, and in fact the "solutions" cheered today are more of what caused the problems to begin with and these "solutions" will quite possibly make the situation worse in due time.

Today the DJIA posted the largest percentage gain since the 1930's and we prefer to be sellers into this kind of general panic to buy, just as we were buyers while others sold in a panic. Despite today's historic gains, the markets and most stocks are still no higher than they were Thursday morning. Sad, but true.

Does that mean the markets have much higher to go? In the short term markets may well bounce higher with the DJIA eventually reaching perhaps the 10000-11000 range, but currently we feel certain that markets and most stocks will be much lower by this time next year and perhaps even early next year if not sooner.

In the meantime we'll trade based on what's happening in the present and ensure we've cash in-hand to either buy when markets are irrationally down 11% in a single day rather than up so much, or to short once stocks are irrationally pushed back up to compelling shorting levels.


PWE opened at $13.97 Friday after our posting we'd be buying it, and closed today at $17.64 which we hope to secure in the morning if not a higher price on any gap-up due to today's momentum. At today's closing price, we enjoy a 26% profit in merely one day!

Some may say we're selling too early, while we say we're prudently speculating while preserving capital and "riding the gravy train".

Waiting a year for the effective 25% dividend on PWE and the potential for greater gains on the stock price is one thing, however the certainty of booking such a large profit overnight for us is that much better so tomorrow we'll sell the shares bought Friday per our last update.


Factor that we also hold the PWE December $20 call options, which we'll keep for at least another day. We paid $0.70 for the call contracts on Friday and the closing bid today was at $1.45 which is very luckily for us already over 100% higher. Should the stock continue to climb, we'll enjoy greater gains on the options. Should it fall it's likely we'll still enjoy large profits upon selling the call options plus we'll be glad we booked the gains immediately on the stock. A win/win situation with effectively no risk.



We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the stocks we do, or mentioning them in this blog. If we hold existing positions we divulge the fact, otherwise we generally buy and sell as diarized here. This blog itself is merely a diarizing of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult your broker or investment advisor before making any investing decisions.

To be notified when this blog is updated :
Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor have we ever sent anything other than update notices for this blog to our mailing list. We only send update notifications when a trade idea is diarized, not if an update only contains general market commentary.