Tuesday, September 2, 2008

Back at Work.

I trust you all had a wonderfully enjoyable long weekend. I was lucky enough to spend the weekend in the absolutely fantastic Lake Michigan town of Charlevoix. If you ever have the opportunity to get to Northern Michigan and in particular places like Charlevoix, Petosky, Harbor Springs, make sure you go, you will not be disappointed.

As for the markets, please do yourself an enormous favor and ignore the pump monkeys, cheerleaders, and assorted charlatans on financials TV as they will put you in the poor house, guaranteed. You may have been stopped out of a very nice position you thought you had going from last week, but I sure as heck hope you weren't sweet talked into buying this market by the absolute clowns they haul out on a daily basid, in front of the audience on CNBC. God help you if that's who you're looking to for counsel.

Housekeeping notes;

I was stopped out of my DIG position at $79.15 as the XLE was smashed at the open for a 5 1/2 pt loss on 2 units long.

I was stopped out of my FXF position at $90.02, as FXF gapped thru my original stop, for almost the low trade of the day for a loss of about $2.75 on 1 unit long.

I was stopped out of my USO position at $86.90, as Oil was hammered and gapped down thru my stop and again almost filled me on the low of the day. The loss was 10 pts on 1 unit.

I was stopped out of my OIH position at $177.60 for a loss of about 9.5 pts on 1 unit.

I was stopped out of SKF position at $109.75 for a $14 pt loss on 1 unit.

I was stopped out of my SDS position at $63.25 for a lost of $1.5 pts on 2 units long.

Ya gotta love the hedge funds as they spike positions coming and going. I can live with this and if you want to be successful speculating in the long run I suggest you get used to it as well. No I am not mad one iota as they can take small pieces of my hide as the rack up very short term profits. You can rest assured they will blow up spectacularly as they get caught with their unfettered formula of leverage and hubris, and I will be on the opposite side taking the big profit as the bankruptcy trustees wind down their operations.

I realise todays pump job and subsequent implosion will have many out there furious. My advice is DO NOT BE ! Learn from this and remember that without this monkeys there will be no gravy train for us for the big kill. I truly mean this. It is absolutely essential these guys be at the table for us to feast on for the truly big kill.

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

Open Positions:
Long 2 units of Powershare Agriculture ticker DBA @ $35.35 stop $34.79
Long 2 units of XTO Energy ticker XTO @ $45.40 stop at $44.42
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $128.56
Short 3 units FedEx ticker FDX @ $87.10 stop at $88.16
Short 2 units of Apple ticker AAPL @ $178.05 stop at $182.76
Short 1 unit Salesforce.com ticker CRM @ $57.05 stop at $60.62

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