Thursday, May 1, 2008

Darden update

I would be breaking a major rule by adding to this trade right now. In that it is not yet profitable and we should never add to losers. The formation looks good enough and I am convincing myself that I am not breaking a rule but rather bending it! Gotta love rationalization.

Yesterdays low of $35.34 would suffice but I will wait for $35.30 to add a 3rd unit short.

Would someone explain to me how Citigroup raising all this cash is good. The dilution continues unabated and if I knew what that meant I would tell you. I spoke with a friend who is a senior Citi Smith Barney cat and the frustration with the auction rate preferred is, how shall I say, SUBSTANTIAL ! They don't seem to want to make anyone whole in a product that was sold as a next to cash, good as cash alternative. Escrow money, tuition money, most definitely not risk capital was stuck in this stuff and now its frozen, using Citi's term. They won't even lend on it but everything is fine at C. Sickening to say the least.

Home Depot closing stores and capital spending there will drop a billion from year ago levels.

Housekeeping notes, I was stopped out of Frontier ticker FTO at $24.62 for just over a 3pt loss.

Good Speculating to you all.

Open Positions:

Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 1 unit Allis-Chalmers ticker ALY @ $14.45 stop at $12.64
Long 1 unit Ultrahort Real Estate ticker SRS @ $84.15 stop at $77.64
Long 2 units Ultrashort MSCI ticker EFU @ $76.25 stop at $71.72
Long 1 unit Ultrashort Financials ticker @ $99.10 stop at $91.74
Long 2 units Ultrashort S&P500 ticker SDS @ $57.90 stop at $55.84
Short 2 units Daimler AG ticker DAI @ $86.20 stops at $82.48/$81.38
Short 2 units Darden ticker DRI @ $34.55 stop at $37.18
Short 1 unit Brinker Int'al ticker EAT @ $21.25 stop at $24.14
Short 1 unit Retail Holders ticker RTH @ $97.95 stop at $100.44

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