Staring Into the Abyss

In case you missed it, the video above is Rick Santelli from CNBC voicing his opinion on TARP, the housing initiative and the stimulus package. Evidently the market mirrored his passion today as they pretty much sold everything they could. Energy showed some strength, but the toxic beast known as the financials, fell of a cliff and the XLF made another historic low. FAZ was brilliant for me again and unless the financials go zero I just don't know how much may be left for me in that one, although a total surrender of all things equity may do the trick. I've squeezed many pounds of flesh from this one, and next to SKF, it has been the greatest security I have ever owned.

Bank of America has joined his good buddies at the watering hole, AIG,FRE,FNM and C, the most expensive one is buying the booze, but BAC forgot his TARP card so as usual it's on us. I wish I took a screenshot yesterday as I opined that we may never see it at $5 ever again. My constant rant since last summer that COF would be $5 looks to be coming a reality too, amazing times for sure. The financials will soon acquiesce completely and we will know who the survivors will be by the action in their respective stock prices. The separation of the wheat from the chaff will start soon.

A Tough Start

Futures are down substantially as Europe leads the way down. U.K. GDP shrunk by 1.5% and the FTSE dropped below 4000 for the first time since December. Capital One reported to a big loss last night but announced that they will maintain their dividend, how fiscally responsible of them.

Pfizer is in talks to buy Wyeth for $60 billion, Harley Davidson's earnings were down 54% and Schlumberger reported a 17% short fall and will layoff 4000 and warned of a big slowdown for 2009. Sony led Asia down with the report of their first annual loss in 14 years. There is more bad news this morning, but I am running out of ink.

When will the companies that took TARP funds eliminate their dividends? This is getting silly. GE just reported as I write, and the stock is flat, the early comment is that they too will keep their dividend in place.

The weekend is finally upon us and I don't see any kind of rally today, although anything is possible. The market is still playing possum with the 8000 level. When it breaks, I anticipate a big move down. Good luck today and I will see you on twitter.

Not Again

First off, all the names on the board this weekend were phenomenal successes, the longs and the shorts, and yes, the financials were way short term overbought. I hope everyone did well. I returned home late today as I shorted a bunch of stocks in the after market. I killed AAPL for about seven points. I'm never long or short through an actual earnings reports, but I have no problem shooting them when they are crawling across the floor trying to catch their last breath, as AAPL, AXP, MRK, COF and UYG did. I kept UYG overnight. I was short STI and UYG most of the day and just shorted the rallies and bounces in most of the financials when I could grab one. Steel and coal were very strong today and and the fertilizer/agri. plays were strong as well. The AXP conference call was dreary and depressing and I think the financials will give some more back as well as the market in general. We still have problems and they haven't been resolved because a three day bounce. Everyone was way to giddy.

When the leaders in the market like GOOG and AAPL, which NEVER disappoint, start disappointing it makes me think the jig is up

CELG,CEPH and IBB performed very well today and these can be good names to hide out.

No Turnaround Tuesday

Manic trading for sure. I made 4 on FSLR short, a buck and a half on UYG short on different trades and a buck and a half on LEH. I lost a half buck on COF short, bad timing and I took a call, I blame my wife every time I lose money. Why not, I have to blame somebody. When I was short a little BSC a while ago, it wasn't until I heard from my sell side buddy,who is impeccable, that that contra brokers had shut the window on BSC (if you can't find the symbol anymore that's Bear Stearns) over in Europe- that's when it all hit the fan. I made a little, not the tons I should have made. I could have paid of any debt I ever had with some puts on that one and bought a chalet in Lake Como if I listened a little harder. The financial meltdown was new to me and I never thought it could happen. Lehman on the other hand is not having such problems,at least yet, and it has been a wonderful short. I am out as a short and will keep a serious eye on this one for a strong dead cat ounce. Not yet though, I have to do some more due dilly. The planet is now officially short the name and they have already told us the quarter will suck so it could be a keeper on the long side at the right price. Maybe I'm sentimental because I used to work there.