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Market in Rally Attempt today

So the crazy market rallied today. How serious this attempt is?

Considering that economic data released today morning were weak and the only fuel for the growth was (as Yahoo.com reported it):

  • Stocks Jump on Hopes for New Greek Aid Package, Still Down for Month
  • Greece moves on austerity, opposition wants more

and similar…

So is this the only reason for today’s crazy run? If so I do not expect this rally to last for long. I think this Friday more economic data should come out, so the market may provide mediocre results until then.

For me there is no change in the strategy. I am still sitting tight and waiting. Right now I wish to buy a SPY LEAPS options but to do so I need to save some money. I still hold all my dividend paying stocks, but got rid of all investments which do not fit my “dividend paying stocks” strategy.

I need to save a few hundred dollars more to be able to buy my first options contract. I want to save more money than needed. It is because I am using leveraging of my portfolio buying stocks on margin to be 200% invested. When doing this I want to have some money left after my purchase as a safety cushion so I do not get caught in margin calls when the market falls.

So we will see what happens in coming days. If you are a small investor and saving money to invest, this is still a good time to sit back, save and wait for the right time. It is coming.

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