Thursday, July 31, 2008

Ultrashort Financials - SKF

My apologies for my earlier quick post. I was trying to get the information out in a timely fashion. Regular readers know my affection for the SKF as it is my preferred vehicle for playing the effects of the credit implosion.

What made me get into this trade. First off the financial charts I posted yesterday evening. Now today we get news of some 2 bit hedge fund out of Britain taking a 6% stake in terminally ill Washington Mutual (Wamu) ticker WM along with Philly based Sovereign ticker SOV. You wanna bet dollars to doughnuts that someone put this news out to get out of a massive long and wrong position on Wamu?

You also wanna bet dollars to doughnuts that like Thain and Merrill Lynch and Mack and Morgan Stanley none of this will be investigated by Cox and the Keystone Cops over at the SEC? I thought so.

I attempted to short WM on the news on hedge fund position news but was not able to compliments of Mr. Cox and the SEC. So I have done the next best thing and jumped on board the Ultrashort financials ticker SKF.

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 6 units Currencyshare Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 4 units Currencyshares Swiss Franc ticker FXF @ $97.70 stop at $93.82
Long 1 unit Ultrashort Dow ticker DXD@ $50.12 stop at $58.62
Long 1 unit Ultrashort QQQ ticker QID @ $37.05 stop at $42.87
Long 2 units Hecla Mining ticker HL @ $8.50 stop at $8.09
Long 2 units Ultrashort 20yr Treasury ticker TBT @ $67.85 stops at $69.24/68.32
Long 1 unit Ultrashort Financials ticker SKF @ $119.60 stop at $114.38
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $131.54

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