Sunday, June 15, 2008

Crude - USO and the Ishares real estate - IYR

We have a dandy looking pennant forming on crude here. This could and should take some time to develop, which helps digest the recent run up in price by those dastardly speculators. Imagine the nerve of them. How dare they! Don't they know the world is awash in supply and all we have to do is raise margin rates, ban institutions from the marketplace, (yes, those same institutions you expect your pension to come from and is holding all those worthless pieces of CDO paper sold to them by Bear Stearns and Lehman) and all will be well.

Better yet, don't they know that according to Larry Kudlow a.k.a. 'The Answer' (apologies to Allan Iverson) all we have to do is raise rates and drill, drill, drill ! and all our problems will be solved. Ahhhh Mr. Kudlow, you poor, poor soul, if only it were that easy! I really wish it was. I won't insult your phenomenally shallow solution, which probably took a whole 4 seconds of in depth consideration to come up with, any further than just reporting the item does on its own.

Nice little rally here into former support which should now serve as resisitance. I am watching and waiting to get even shorter IYR via the Ultrashort Real Estate ticker SRS.

Housekeeping notes.;

I was stopped out of 1 unit short of Lehman at $25.87 for a gain of just over $17.50 pts. This still leaves me with 1 unit. Not bad for a company that is in no need of liquidity, nor capital but is raising it just to handle perceptions and is gonna run in the shorts. Go get em' Dick ! Tom Clancy couldn't make this up any better !

A quick note to former CFO Erin Callan, who after being thrown under the bus by Dick is rejoining her old unit in investment banking at Lehman. Most people don't have to be bitten by a snake to realise it's a snake but I understand your confusion, the money is so good on Wall St., the power so intoxicating that some have to be bitten. Get out now !! Life is too short.

Good speculating to you all.

Open Positions:
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 3 units Ultrashort Dow DXD@ $50.12 stops at DIA $130.26/127.34/126.42
Long 2 units Ultrashort Financials SKF @ $103.90 stops at XLF $26.72/25.54
Long 1 unit Currencyshares Swiss Franc ticker FXF @ $96.25 stop at $93.82
Long 2 units Ultrashort ReEstate ticker SRS @ $88.80 stops at IYR $70.21/68.36
Long 1 unit US Gasoline Fund ticker UGA @ $60.35 stop at $60.92
Long 1 unit US Heating Oil Fund ticker UHN @ $58.00 stop at $60.87
Long 1 unit Ultrashort QQQ ticker QID @ $37.05 stop at QQQQ $49.56
Long 1 unit Ultrashort S&P ticker SDS @ $57.20 stop at SPY $141.54
Long 2 units Frontier Oil ticker FTO @ $26.25 stop at $26.36
Long 1 unit Hecla Mining ticker HL @ $8.30 stop at $7.16
Long 1 unit Kinross Gold ticker KGC @ $18.70 stop at $17.56
Short 1 units Daimler AG ticker DAI @ $86.20 stop at $71.62
Short 1 unit Brinker Int'al ticker EAT @ $21.25 stop at $22.44
Short 2 units Goldman Sachs ticker GS @ $191.53 stops at $184.43/180.76
Short 2 units Darden ticker DRI @ $36.35 stops at $35.36/33.54
Short 2 units Lehman ticker LEH @ $43.70 stop at $28.32
Short 2 units Deutsche Bank ticker DB @ $117.03 stops at $105.26/99.32
Short 1 unit of Visa ticker V @ $86.25 stop at $85.36
Short 2 units HSBC ticker HBC @ $83.23 stops at $83.52/81.36
Short 1 unit of Netflix ticker NFLX @ $31.10 stop at $34.64

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