Investment Update

I've had some very hectic couple of work days recently, and it's been difficult to spend time on this blog. As promised, I will begin accounting for my investments.

My current investment strategy is split between $2,000 in an interest-bearing checking account and $6,500 in investments.

Those investments will be primarily in ETF index options. My investment goal is a modest 6% a month, which is ample to pay back the initial loan fee of $255, and make some money on the free loan during the next 6 months without much time commitment from me.

Here is my current tracking sheet:

I am keeping track of each of my investments, and as you may be able to decipher, I have already made one profitable trade worth $190, or about 3% return.

I am halfway there to my monthly goal already, and I have yet to begin the first full month of investing.

Market Sentiments

The market continues to feel edgy, erring on the side of optimism. With an expected rate cut coming, but with future rate cuts in doubt, the market is wearing its heart on its sleeve, ready to ride the waves of any surprise earnings releases.

Now that I've been burned a few times by this volatility, I am going to sit back and watch the markets closely today. While I now have the money to implement my trading strategies, I will still err on the side of caution.

Here we go financials...

I was expecting the other shoe to drop today on financials, as more big names announce earnings this week. I had also expected some negative news out of National City as well.

With the announcements made by Bank of America and Nat City, I think we are well on our way to the financial sector recovering from its December-January Bear Stearns slump.

The financial sector itself has depressed for several months, with rising inflationary concerns coupled with sub-prime mortgages. However, after this week, my expectation is that the volatility and negative sentiment for this sector will be over. The major banks have laid their problems all on the table, and while there is no smooth sailing, we should expect nothing in the way of surprises in the near future.

At the same time, the tech sector continues to feel good about itself, still drunk on Google profits, and never-ending Yahoo/Microsoft merger deal.

By Friday, I expect to be purchasing both XLF and QQQQ, the financial and Nasdaq ETF respectively.

Borrowed Cheaply - Day 1

Today marks the official beginning of my borrowed funds. I chose to borrow $8,500 @ 0% APR until November 1, 2008. However, there is an associated 3% balance fee, removing immediately $255.

As soon as the money clears the bank, I will move it into my trading portfolios. I will then track the outcomes of those portfolios and monthly remove money in order to pay the minimum monthly balance on the loan.

I will keep readers informed and up to date about my progress.

Initially, I am thinking of buying 10 Nasdaq Index (QQQQ) July Options @ 48 and increasing my investment in E-Trade (ETFC), if it falls below $4/share again.

Borrowing cheaply to fund investments - Pt. 4

So just as I was about to embark on my plans, another balance transfer arrived, charging 0% until November 2008, and allowing for $11K. I think I will take these checks with me to work tomorrow, and use them for my trading accounts.

Many are wandering what I am going to invest in, here we go:

QQQQ Call Options for July, XLF Call Options for July, and NCC Put Options for May.

I will report back here once I have started making these transactions and start tracking the results of these transactions.