Back to the States: What a market!

Where’s Dax?

My readers may be wondering where the heck I was the past week. Well I was on a cruise on a real vacation in the Bahamas. I did not check email. I did not use the internet. I did not use a phone. I was truly on vacation.

But now I’m back.

Wow…What a day!

Today was quite a day in the market. I had a feeling today would go either way and was thinking there may be a turnaround. The trading most of the day led me to believe I was wrong and I went short on Goldman Sachs. I got burned right at the end of the day.

Tomorrow’s Moves

Tomorrow is another day and a good one. This sell off in the financials offers some good pickings if you know where to look. I’ve been watching one particular mortgage company get hammered. Thornberg Mortgage went from $27 ish to a lowly $8 in a matter of a few days. It “popped” today, up 17% in regular trading and another 13% in after-market trading. While this is a large move, the stock is still at $13.99, less than half its starting point. The company has confirmed it will be able to weather the storm and its backers are pumping money into it. The company is ahead of the game and says it will be business as usual once this is done. In fact they reaffirmed their dividend payment. That speaks a lot.

Tomorrow I will be opening an overweighted position in Thornburg (TMA). I believe we’ve hit the bottom and will see some volatility in the coming days, but an overall upwards movement tomorrow or next week.

If you don’t have the stomach for this stock than I recommend you look at the XLF. XLF is an exchange-traded fund that tracks the financial sector. It was up 3% today.