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Downside Protection
Old 05-11-2007, 12:20 PM   #1
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Downside Protection



Get ready for the next big rally! Chances are things will be looking up because today I spent a few quid on Powershares QID. Its a doubledownside play on the Nasdaq. I guess that means I'm calling the top at 2555.

My knuckles are a lovely shade of white. So far I'm up $15 8)



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Re: Downside Protection
Old 05-11-2007, 01:00 PM   #2
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Re: Downside Protection

Oh, Great! Another market timer. : Just kidding. Good luck...but just in case, you better get that crystal ball all polished up.
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Re: Downside Protection
Old 05-11-2007, 01:09 PM   #3
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Re: Downside Protection

My downside play is to finish this year by fritzing the last 14 Drip plans in the last file cabinet - deposit the stocks in my VG broker account and sweep the dividends into my Prime MM checking.

That way the Norwegian widow doesn't have to stand out in the rain and snow by the mailbox waiting for the divdends.

She is getting older - and might as well make use on modern technology.

I hear the price of stamps is going up again Monday.

heh heh heh -
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Re: Downside Protection
Old 05-11-2007, 01:20 PM   #4
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Re: Downside Protection

My downside protection --- I just got a CD from the Boeing credit union for an annual yield of 7.14% FDIC. No worries and it beats inflation.
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Re: Downside Protection
Old 05-11-2007, 01:21 PM   #5
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Re: Downside Protection

What downside? The market cant possibly go down....
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Re: Downside Protection
Old 05-11-2007, 01:38 PM   #6
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Re: Downside Protection

Quote:
Originally Posted by janeeyre
I just got a CD from the Boeing credit union for an annual yield of 7.14% FDIC.
Amazing!
BECU? That website shows no such CD. Top rate there is 5+%
Don't credit unions use NCUA for insurance instead of FDIC?

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Re: Downside Protection
Old 05-11-2007, 01:58 PM   #7
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Re: Downside Protection

Bum -- try this site

You were probably on the BECU web site. This is the helicopter division's credit union.

http://www.bhcu.org/srates.html
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Re: Downside Protection
Old 05-11-2007, 02:38 PM   #8
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Re: Downside Protection

Quote:
Originally Posted by janeeyre
Bum -- try this site

You were probably on the BECU web site. This is the helicopter division's credit union.

http://www.bhcu.org/srates.html
I'm not BUM, but I was looking at BECU.
Now I do see the 7.14%....in an IRA...
how does that work....you open an IRA with them and buy the CD in there?

and they are NCUA and ESI




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Re: Downside Protection
Old 05-11-2007, 03:01 PM   #9
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Re: Downside Protection



I also have been selling off a few putz stocks and fattening up my VG Prime MM account. This QID has the offsetting effect that I've been looking for. No options. When the market it way up its way down and vice versa. Now to figure the right balance...



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Re: Downside Protection
Old 05-11-2007, 03:29 PM   #10
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Re: Downside Protection

Quote:
Originally Posted by janeeyre
My downside protection --- I just got a CD from the Boeing credit union for an annual yield of 7.14% FDIC. No worries and it beats inflation.
How does one join the Boeing CU if not a Boeing employee? wow 7+%? what is the length of the CD?
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Re: Downside Protection
Old 05-11-2007, 04:37 PM   #11
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Re: Downside Protection

I think I'd rather buy index puts for downside protection, but different strokes.

I've been slowly selling off bits and pieces as stuff has gone up. Recycling some of the cash into new positions, but mostly letting cash balances climb in preparation for some bottom-fishing in the next correction (whenever it comes along). Threw some DSX call options out teh window this morning after a spectacular run.
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Re: Downside Protection
Old 05-11-2007, 06:13 PM   #12
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Re: Downside Protection

You can transfer a present IRA to the BHCU or open up a new IRA. It is a money market IRA and the duration of the 7.14 is at least 6 months. It should stay at the current rate for another 6-12 months. It is open to the public.
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Re: Downside Protection
Old 05-11-2007, 07:01 PM   #13
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Re: Downside Protection

Quote:
I've been slowly selling off bits and pieces as stuff has gone up ... mostly letting cash balances climb
ditto
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Re: Downside Protection
Old 05-11-2007, 07:29 PM   #14
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Re: Downside Protection

I'm looking forward to rebalancing in a few months. My foreign equities are getting ahead of themselves again.
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Re: Downside Protection
Old 05-11-2007, 08:39 PM   #15
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Re: Downside Protection

If you like to pick and predict tops you should read the guys on this site:
www.traders-talk.com
they will help you lose some money.
So far my reading of the charts don't hint at a top.
There is a great deal of cash sloshing around the world right now. Central banks are beginning to tighten up with no affect so far.
Maybe it will be next year that all the piegons will come home to roost.

If you are looking for some indication I would suggest IBD
www.investors.com

I think the only thing that will take this market down is a terrorist act in the USA. Depending upon the act it may just be a buying opportunity.
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Re: Downside Protection
Old 05-12-2007, 06:45 AM   #16
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Re: Downside Protection

Quote:
Originally Posted by dex
If you like to pick and predict tops you should read the guys on this site:
www.traders-talk.com
they will help you lose some money.

Dex, That is very funny. You are right about "all that money sloshing around". Two talking heads on CNBC said, "We now call that liquidity. We used to call it inflation." Whatever it is, liquidity, oil profits, inflation, I feel like Humpty Dumpty. As said above, my portfolio is way ahead of itself. I like where it is. I'd like to keep it there, for a while but I haven't come to terms with selling all and "buying dollars" in Vanguards Money Market Fund. All in all, nice problems to have :P



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