GDP # Takes Away The Punch Bowel

Running late so this is quick. I'm long some QID and SDS for now going into the open Watching for a possible short in XME as coal and steel could give some back. IBB could be a long trade off the IMCL buyout. I'll be twittering all day and will be back if I see anything real hot.

DILUTION

I posted the two poster children for dilution and broken revenue models, WM, WB over the weekend and said there was more to come. Well, Merrill Lynch announced after the close that they are unloading $30 billion in toxic mortgages at a huge discount and issuing $8.5 BILLION in new common stock. By contract ,they have to issue payments to the assho......, I mean shareholders that swallowed the last raise at higher prices. The stock was initially pounded in the after market but recovered a little. I remember when Wachovia did this a few months ago, the stock initially recovered and then dropped more than 50%. What a mess. If you are a long term investor 2-5 years you may have a shot, right now--they are nothing but shorts.

LLTC never caught the breakdown today but no harm done there. UYG and QID were big winners for me as I held them through the weekend and covered. UYG is a short for the new readers. I only short UYG when I am bearish on the financials. MOS posted after the close and I don't think it lit anything on fire, pretty muted action though. I watched that AGA trade today, and it's about as liquid as a CD so be careful, an OK longer hold but not day tradeable until it gets more liquid.

Lunch

The financials are leading the way down as I thought might happen. I've covered half of my short UYG position and half my long QID position, both at nice gains. I will either add to my position or cover/sell depending on what the market does later. The strength is in coal, steel,solar,energy and the weakness is tech and financials.

Earnings of interest to me after the close: AMGN, CF, MOS, PFWD

It's Hard To Put Lipstick On This Pig

With all the Lieberman/Paulson saber rattling going on it didn't do much to affect big scary oil. I'd be lying if I said I wasn't unnerved by the big opening, but after the initial meteoric rise the market ran out of gas. The flurry of buying in the last 20 minutes was nothing more than some black boxes kicking in. I had to do a lot of movin and groovin to do to trade around my shorts from last night but it ended splendidly. At one point I found myself asking "is this heaven?" ( a great line from the movie Field of Dreams). I added to AA short, a new position in MER short which I caught perfectly and I even caught a beautiful trade in USO on the long side. QID was phenomenal and I caught most of that move. I also added to DXD and SDS on the rally. I am nicely ahead going into tomorrow and unless oil completely implodes, I think the market is looking at lower prices. Today was a very "bearish" day in my opinion and I couldn't have done it without my charts.

In U.S. Open news, Jim Furyk's left chest is worth $1.5 million. That is only one body part. His left sleeve is worth $600k. Excelon Corp. paid the $1.5 mil. Why can't I have a short game--or a long game for that matter. I'll be back later.

p.s. It was a good day, a very good day.

Patience

The Dow appears to be in the same trading range since the second week of January. It would not surprise me to see a test of the lows in the next two or three weeks. I think any rallies can be sold or shorted until we see that level in my opinion. QID,SDS and DDM will remain my good pals until this gets resolved. I will keep a very short leash on longs with extra close stops in here. Remember, the biggest money is always made from these vicious corrections so don't get depressed. This is an awesome time to be doing homework and finding the leaders on the way up