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

Mixed Open

I was long QID and short UYG into the weekend, so far it looks slightly lower on the financials and flattish on the NAZZ. It's getting interesting with the CLF/ANR merger. Shareholders fighting the potential buyout of ANR by CLF. I agree, I think CLF is top ticking the space. A potential PAIRS TRADE? Long CLF and short ANR....stay tuned

Just A Feeling

I went into the weekend long QID and short UYG