Saturday: Declared here that "I'll be waiting for capitulation (high-volume, high-volatility, large-percentage indices decline) to put the newly-freed cash to work."
Monday: Observed the CBOE Volatility Index (VIX) rocket up to just shy of 30, and thought to myself, "this seems pretty darn close to capitulation." Added to my existing positions in Terra Nitrogen (TNH) and Foster Wheeler (FWLT) in the late afternoon.
Tuesday: Fed Appreciation Day. Stocks...go...up.
It's worth noting that the stock I exited out of on Thursday, Annaly Capital Management (NLY), popped 17% on Tuesday and is up 7% from where I sold it. Also worth noting that four other stocks I've owned in the past, but don't own now - Countrywide (CFC), Americredit (ACF), First Marblehead (FMD), and lululemon athletica (LULU) - were up double-digit percentages as well.
But all in all, I'll take things as they are. It will be interesting to see where the market goes from here. Like everyone else, I'm hoping Monday was the bottom.
