Capitalism Will Prevail !!!

5pm At the end of the day, there are companies out there that make money. There is value out there somewhere. There are honest, functioning businesses out there that actually will do good things long term. The investor who has the intelligence and the balls to jump in as we go lower will be a wealthy person at the end of the day.

The bottom line here is that we have a government who is shifting the country dramatically toward a socialistic system. The market clearly does not approve. If you look at the companies who are in bed with the government, they are the ones that are completely uninvestable. Auto makers, banks, insurance companies, etc. will all be completely off limits for any serious investor as long as a socialistic government is busy "saving" them pretending that they are too big to fail. Capitalism (the market) will not stand for this and will not reward companies with their mouth on the government teat. They will not have a value higher than a buck or two until they are true capitalistic businesses that make money and reward shareholders.

Alright, enough soapbox. Let's make some cash. Remember First Solar (FSLR)? They held up in a miserable tape today and after hours announced they had acquired some OptiSolar projects. This stock has some room to run. I might not be able to get it any cheaper. Although, if the market continues to behave the way it is now, who knows how low it can go. I think it can stay strong.

I set up another hedged option trade today. This time it was with Urban Outfitters (URBN). The stock was a great growth story about 6 months ago before the wheels fell off the economy. It will be interesting to see how things shake out for this company. With last quarter's earnings announcement, the stock got clobbered. I think the expectations are low enough that they can beat numbers and send the stock much higher. Otherwise, this stock could go into the single digits in short order. Either way, I am prepared.

Oil was a mess today, down about 10%. My (DXO) position took a dramatic hit. I am still sticking with this one. I bought the ETF and not the options which allows me to be early. This one hurts right now but it is all on paper. Until next time, stay low risk..