06/08/2010 Time to reload!

Reloaded 25% of shorts at the close. Will continue to reload up to 1080.

Some technicals looking bullish. However, we just don't think the bottom is in yet.

Two moves to make at the edge of the abyss.
1) fall over
2) go away

We're reloading for scenario #1.

06/06/2010


We sold our puts and closed short positions on the close Friday. Although this market could still plunge lower, there is a clear divergence between the Dow/S&P and NASDAQ.

Typically when NASDAQ leads we rally. Most techs are well capitalized with low debt structures. We are currently very oversold, however in this type situation the cliff still lies ahead. Whether or not it is tomorrow, next week or next month, we are close to the abyss.

Looking to re-enter short positions as soon as we relieve the oversold condition.

05/03/2010 Deflation ahead!

http://http//www.cnbc.com/id/36913625

Deflation increases the debt burden. Inflation will eventually be the only way out for sovereign debt. If it would only happen sooner rather than later.

05/01/2010 GM pays back loan??????

http://www.forbes.com/2010/04/23/general-motors-economy-bailout-opinions-columnists-shikha-dalmia.html

Nice!

The market has either topped or we will make one more run towards a new high, then look out below.

2nd half of 2010 will be like 2008.

From Zero Hedge 03/28/2010

http://www.zerohedge.com/article/more-meets-bottom-line-are-banks-getting-crushed-due-negative-swap-spreads-and-190-trillion-

03/04/2010

Not a bear in sight.

Beware the Ides of March!

The market has risen on bad news for quite a while now. Here comes the good news and the sell off.

When there is blood on the streets you buy. When it looks like the governments of the world have saved us all from ourselves, it must be time to sell.

Holding short. Adding to positions.

2/18/2010 The Party's Over!

Sample of today's headlines:

Jobless Claims, Inflation Jump as Economy Wobbles

Bank Profits Ready to Tumble, Stocks to Fall: Whitney

Wal-Mart Sales Fall Short of Forecasts

Fed Raises Discount Rate to 0.75% From 0.50%

Does anybody else see what is happening? The Fed must now start reeling in the massive amount of liquidity it has poured into the market.

Rates rising, Dollar soaring, Euro crashing, unemployment rising, Sovereign debt coming out of the closet (thanks to GS). Hmmmm.

Earlier this week the Chinese expressed that they maybe tire of buying our debt. Well, let's give them a higher rate to entice them to buy more! (Yeh, that'll work).

Next weeks headlines:

Weak demand for Treasury Auction!

Even if the economy can somehow continue to grow, the run in the stock market is over!

Might have been early on the 14th but happy with our position.