Overnight winner

It was a mega black swan event yesterday. S&P halted trading for the first time since 1997 and DOW dropped 2000 points. STI closed 6% down. Probably the largest single day drop experienced by anybody who's vested in the markets. 

Stark contrast to my blog title - it's massacre for US stocks

My US portfolio which was beaten down earlier by big names such as Disney, WBA, IBM and FB (already long position stopped out) still cling on to 2 long positions - 3M and FB as of yesterday. Yet when I finally logged in to my SAXO account (after multiple failed attempts probably due to servers overload), I was greeted by a slight tinge of green. *Surprise*
Thanks to my one and only hedge, the 20-Year Treasury Bond (TLT). If only I didn't close out all my marginally losing short positions prior to going on overseas trip, I would have gotten a pasture and not some grass. That's black swan for me.

I closed out all my positions at a slight net profit yesterday when the Treasury yield hit a low point like free fall.

What happens when a pendulum swung too far? It will surely swing back the opposite way. 

And so I spotted a sparkling opportunity.

I decided to do something gungho. I scrolled through my watchlist, picked one of the most "elastic" stock that plummeted (it dropped from a high of 207 on 6th March to 195 on 9th Mar, make a guess which one?) and whacked a long position on CFD. This time I got put on seat belt (cos market now on roller coaster mode) - put in my stop loss point and also a take-profit point based on calculations. Then I went to sleep.

Tonight when I logged in to my account, my take-profit point got triggered. Gain point 5.3%.

Enough to cover for all my previous stupid losses.

:)

When we see a black swan, usually the white one is just round the corner (the white one is called Opportunity).

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