We re reproducing a prior post from ZYX Buy Change Feed on our earlier Bank of America (BAC) trade and its effect on Penson (PNSN).
We have received a number of questions on BAC. The answers can be categorized as follows:
- Those subscribers who have direct access to ECNs should have had no difficulty in getting great fills. There was ample liquidity at most venues.
- We are inundated with requests to do a coaching seminar on how to get great fills. We appreciate the input. However, we feature only one coaching seminar at a time. The seminar that is currently being featured is titled: HEDGE THE RISKS. In this environment, learning practical techniques of hedging is very important.
- We have received a lot of requests to register for the coaching seminar Bullet-Proof Your Portfolio and we just ran this seminar three months in a row. The next seminar is not scheduled at this point. If you are interested please send an email to be on our list to be informed when the next seminar is scheduled.
- Taking profits on 50% of our position was correct even if the stock had continued to go higher. One of the axioms of our method is that no one knows what will happen next. We had about 15% profit in a very short time. It was prudent to book half of it.
- It is likely that today may be a turning point on the financial sector, but the consistent selling after the up move in the morning is not encouraging. The short sell ban on financials was extended in Spain. Apparently European institutions feel that it is safer to short U.S. financials to hedge their European long financials.We will be carefully analysing the data and will keep you informed. If this is the turning point, then there is a long list of financials that we want to buy.
Of special note is PNSN. If we develop more conviction in the turn, we will want to add to our PNSN position.
